EMERGING MARKETS
New fund to cater for green investors
New York — The World Bank’s International Finance Corporation (IFC) and European asset manager Amundi are targeting year-end to raise $2bn for what is expected to be the world’s largest green-bond fund dedicated to emerging markets. The fund aims to marry the goals of investors seeking more high-yield opportunities and development banks seeking to expand the green economy in emerging markets. Initially, only 10% to 12% of capital in the fund would be invested in green bonds, said Fred Samama, deputy global head of institutional and sovereign clients at Amundi. Lenders such as the World Bank are eager to see the market for environmentally-friendly securities grow faster to help reach global climate goals. The entire green bond market is projected to surge more than 30% in 2017 to a record $131bn, according to Bloomberg New Energy Finance, still just about 0.2% of the total bond market. "We see the opportunity to offer yield and diversification to these investors," said Jean Marie Mas...
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