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Senior executives of the International Finance Corp and Amundi will gather in Paris this Friday for the official signing of Amundi Planet — Emerging Green One: the innovative fund the organisations set up to invest in green bonds issued by emerging market banks. The fund is already closed and listed on the Luxembourg Stock Exchange.
As <i><g class="gr_ gr_49 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del multiReplace" id="49" data-gr-id="49">GlobalCapital</g></i> reported when plans for the fund were announced in 2017, the idea, then called the Green Cornerstone Bond Fund, could be a powerful way to support the financing of green projects in emerging markets.
Unlike most green finance initiatives, it aims to channel money to organisations — EM banks — that do not have easy access to capital markets. They are also best placed to finance green initiatives in their local markets, which may be much too small to access capital markets directly.
The structure also uses three levels of credit enhancement — two in the fund, plus the banks’ own capital — to protect the green-minded investors in the developed world, which are often timid about risk.
And...