LONDON: Barclays will invest at least 1 billion pounds ($1.6 billion) by November next year in green bonds from issuers including the World Bank, the British bank said on Monday, more than trebling its investment in the sector.
Green bonds are fixed income securities designed to raise capital to finance low-carbon investments such as schemes to curb greenhouse gas emissions.
Issuers are mainly governments or development banks such as the European Investment Bank, World Bank, International Finance Corporation and the European Bank for Reconstruction and Development.
Barclays' existing portfolio of green bond investments is currently valued at 430 million pounds.
"Barclays' Treasury team will continue to consider investments in new supra-national organisations and government issued bonds as they become available," the bank said in a statement. "Barclays will review its commitment to the green bonds sector on an ongoing basis, with the potential to increase it depending on overall growth of the sector."
The supply of green bonds is expected to reach $40 billion this year, almost four times the $11 issued last year, according to the Climate Bond Initiative.
"The participation of strategic investors such as Barclays in the green bond market will continue to bring scale and diversity to the market and help mobilize more capital for climate-friendly projects," said Madelyn Antoncic, Vice-President and Treasurer of the World Bank.
"Commitments on the part of banks such as Barclays will have a hugely positive impact on the growth of the market - especially if similar investors follow."
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