“The capital markets are beginning to play an increasing role in mobilizing funds from the private sector for climate change mitigation and adaptation projects. The challenge is to design products that meet investor preferences and needs.

World Bank green bonds are an example of a product designed for and in collaboration with investors looking for high grade fixed income assets that allow them to support these types of activities and be part of the solution.”

Doris Herrera-Pol, Global Head of Capital Markets at the World Bank.

In response to this “challenge”, Nikko AM has collaborated with the World Bank, to provide bond investors with a strategy that possesses genuine SRI/ESG credentials. World Bank green bonds support projects that address the climate challenge, as selected by World Bank environment specialists, based on predetermined criteria that promote low-carbon development.

Key Characteristics
  • Invests in green bonds issued by the AAA rated World Bank
  • Exposure to both developed and emerging currencies
  • Directly helping to combat climate change

An appealing characteristic of this approach lies in its simplicity – the World Bank issues green bonds in a range of developed and emerging market currencies, from which the investment team selects specific bonds/currencies. World Bank green bonds have the same credit quality as other World Bank triple-A rated bonds; they are liquid and tradable instruments, with a “plain vanilla” structure.

More information: World Bank green bonds