World Bank's IFC, Amundi to Create $2 Billion Green Bond Fund

The World Bank's private sector investment arm and European asset manager Amundi have agreed to form a $2 billion green bond fund to help provide more financing for low-carbon investments in emerging markets, they said on Friday.

Green bonds are used to raise funds for projects which help tackle environmental problems such as renewable energy, energy efficiency and waste management.

The International Finance Corporation (IFC) said it would invest up to $325 million in the so-called Green Cornerstone Bond Fund, which will buy green bonds issued by banks in Africa, the Middle East, Latin America, Eastern Europe and Central Asia.

Amundi will raise the rest of the $2 billion from institutional investors worldwide, the IFC said in a statement.

The global market for green bonds was worth over $90 billion last year and is forecast to grow to around $120 billion this year, according to Moody's Investors Service.

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