The Asia Infrastructure Investment Bank (AIIB) and French asset manager Amundi have partnered to launch a $500 million Asia Climate Bond Portfolio.
The portfolio will be used to invest in labeled green bonds and unlabeled climate bonds in Asia and engage with issuing companies to help them transition their business models to increase climate resilience and green leadership, according to AIIB.
It will launch with an initial size of $500 million, with a matching $500 million expected to come from institutional investors. A portion of the investment proceeds will be allocated to market education, engagement and issuer support.
“We expect this investment will demonstrate how international financial institutions can approach development finance differently to support the Paris Agreement and adoption of climate finance principles,” said D.J. Pandian, vice president and CIO of AIIB.
The portfolio will start investing in January of 2020 and will progressively deploy the committed capital in eligible assets.
