MANILA -- The Bangko Sentral ng Pilipinas (BSP) has placed USD150 million in the green bond fund launched by the Bank of International Settlements (BIS).
In a statement Tuesday, the central bank said it is “proud to be a member of the advisory committee created by the BIS to give guidance on the objectives of the initiative and the features of the fund, which is designed to help central banks incorporate environmental sustainability objectives in reserve management.”
“With its participation in the open-ended fund, the BSP takes a step further in recognizing the role of sustainable investing in reserve management,” it said.
“Investing in green bonds will also provide diversification benefits to the Bank’s total reserves,” it added.
BSP Governor Benjamin Diokno said the country’s investment in BIS’ green bond fund “is now part of RP’s (Republic of the Philippines) GIR (gross international reserves).”
“It’s part of the diversification of the Bank’s reserves,” he said in a text message.
The BSP statement cited that “climate change appears to be inevitable, and the financial sector has a significant role to play in pursuing sustainable and inclusive growth in the global economy, the environment, and society.”
“The BSP is one with the BIS in its broader commitment to support environmentally responsible finance and investment practices,” it added. (PNA)
