The private sector arm of investment of the World Bank along with the asset manager of Europe, Amundi have announced that they are going to collaborate and form a green fund dedicated to the development of green technology. The fund is said to incorporate a sum of 2 billion dollars. This green fund will provide assistance in terms of finances to all the low carbon investments and are gradually emerging in all the rising markets around the globe.
The green bonds are created and formulated with the main purpose of raising the required funds for low scale as well as high scale projects that are going to tackle the problems and challenges faced by the environment and make use of green and clean energy technology like renewable energy sources and also make sure that efficiency of energy is continuously boosted and the management of waste takes place.
The IFC (International Finance Corporation) said that it is going to carry out an investment of a sum of 325 million dollars to a bond called as Green Cornerstone Bond Fund. This Bond Fund will be buying green bonds that are going to get issued by the banks in Central Asia, Eastern Europe, Latin America, Middle East as well as Africa.
The international Finance Corporation also declared in a statement that the asset manager, Amundi is going to raise the remaining sum of money, which is about 2 billion dollars from the investors of multiple institutions that are located around the world.
The investor service by Moody has stated that the market around the globe for green bonds was estimated to be somewhere more than 90 billion dollars in the year 2016 and this vale of the global bonds is likely to surge to an amount of 120 billion dollars in the year 2017.
The International Finance Corporation has said that a small number of banks in the developing countries that are issuing such green bonds for the growth and development and their initiatives are likely to inspire, encourage and motivate several other local financial institutions to help support the cause of building a green economy.
The Chief Executive of International Finance Corporation, Philippe Le Houerou said that these green bonds are going to help decrease the risk in the private sector and it is also going to attract many new investors who are willing to assist in the creation of a market that initially ceased to exist. He also said that the IFC had already identified and acknowledged several banks in the developing nations that are going to foster this cause. He also confirmed that the investments in these green bonds will be spanning for about 7 years.