BSP invests $150M in green bonds
Credit to Author: Mayvelin U. Caraballo, TMT| Date: Tue, 29 Oct 2019 17:40:50 +0000
The Bangko Sentral ng Pilipinas (BSP) has invested $150 million in the green bond fund earlier launched by the Bank of International Settlements (BIS), BSP Governor Benjamin Diokno said.
In a text message to reporters on Tuesday, Diokno noted the invested amount was sourced from the country’s gross international reserves (GIR).
“It’s part of the diversification of the bank’s reserves,” he added.
The country’s GIR currently stands at a record-high $86.16 billion as of September this year, with central bank’s investment income as part of its growth driver.
In a separate statement, the BSP stressed that “it takes a step further in recognizing the role of sustainable investing in reserve management” following its participation in the open-ended fund.
“Climate change appears to be inevitable, and the financial sector has a significant role to play in pursuing sustainable and inclusive growth in the global economy, the environment, and society,” it said.
“The BSP is one with the BIS in its broader commitment to support environmentally responsible finance and investment practices,” the Bangko Sentral added.
In September, the BIS highlighted that the green bond fund was its response to a growing demand for climate-friendly investments among official institutions.
“The initiative helps central banks to incorporate environmental sustainability objectives in the management of their reserves,” it added.
BIS explained that the fund pools its client assets to promote green finance through sizeable climate-friendly investments, and support the adoption of best market practices to deepen the green bond market.