BIS launches euro-denominated green bond fund for central banks

The Bank for International Settlements rolled out a euro-denominated green bond for central banks as a follow-up to the success of the U.S. dollar-denominated green bond fund.

The fund is expected to help central banks adopt "environmental sustainability objectives in the management of their reserves," said the BIS, which is owned by central banks. Together, the two BIS funds will manage about $2 billion in green bonds for central banks.

The open-ended fund is structured according to Swiss law and falls under the BIS Investment Pool family, which is commonly used by the BIS asset management arm for fixed-income investment products. Qualified bonds carry a minimum rating of A-.

"In line with the initiative's objectives, we are continuing our dialogue with green bond issuers and remain committed to supporting the adoption of best market practices, including improved impact reporting, to deepen the green bond market." Peter Zöllner, head of the BIS banking department, said in a statement.