MANILA – As part of its commitment to lead by example and redirect capital to address urgent global challenges, the Bangko Sentral ng Pilipinas (BSP) has invested in the Asian Green Bond Fund (BISIP G3) of the Bank for International Settlements (BIS), which aims to help fund investments in green projects across the Asia-Pacific region.
The decision bolsters sustainability efforts and supports the sustainable central banking agenda, BSP Governor Benjamin Diokno said in a news release on Friday.
“The participation in the fund is expected to provide the BSP with an additional source of return and investment diversification that is consistent with our prudent approach to reserve management,” Diokno stated.
The BIS launched the Asian Green Bond Fund, a US dollar-denominated and open-ended fund, in collaboration with development finance institutions and an advisory committee consisting of various central banks, including the BSP.
The fund supports environmentally responsible projects in the Asia- Pacific region and provides a platform for central banks to invest their reserves in high-quality green bonds that meet internationally accepted standards.
The BSP previously invested a total of USD550 million in the BIS USD Green Bond Fund (BISIP G1). (PR)