Solactive has launched the Solactive Green Bond Index, the first index in the market to provide exposure to green bonds, based on a universe provided by Climate Bonds Initiative.
The green bond concept was developed in 2007 by the World Bank and the European Investment Bank.
Green bonds are now commonly defined as fixed-income securities that raise capital for a project with specific environmental benefits, where the proceeds go to climate mitigation or adaptation efforts. Green bonds are part of the overall climate themed bond market, which has been rapidly increasing over the last years to USD346bn today.
The Climate Bonds Initiative is a not for profit organisation working at mobilising the bond market for climate change solutions. The organisation runs several investor-focused projects, including a regular monitoring and in-depth analysis of the climate-themed bonds market.
Astrid Ludwig, head of the bond & complex team at Solactive, says: “Most of the responsible investment products available so far have been launched on the equity space. We are enthusiastic at the idea of offering this new, innovative index solution which clearly fills a gap in the market, as we see a tremendous interest generated by green bonds.”
Sean Kidney, CEO of the Climate Bonds Initiative, says: “As it enters its next stage of growth, the green bonds sector needs more than ever an ecosystem of services for investors. We’re thrilled with the launch of the Solactive Green Bond Index, as green bond indices are a good starting point for those wishing to create financial products in that space.”
