THE BANGKO SENTRAL ng Pilipinas (BSP) has invested $150 million in the open-ended green bonds launched by the Bank of International Settlements (BIS).
In a statement released Tuesday, the central bank said its investment in the green bonds launched by the Switzerland-based lender will help diversify the BSP’s reserves.
BSP Governor Benjamin E. Diokno told reporters in a text message that BSP invested $150 million to the said green bonds.
“The BSP 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,” the central bank said in the statement.
“The BSP is one with the BIS in its broader commitment to support environmentally responsible finance and investment practices,” the central bank added.
The BIS launched the open-ended fund in September and is structured according to Swiss law. It is part of the BIS Investment Pool family, a format used by BIS for its fixed income investment products.
The BIS acts as a bank for central banks. It is owned by 60 central banks around the world.
In a forum by The Asian Banker held earlier this month, Mr. Diokno said the central bank has acknowledged the repercussions of climate change as well as the banks’ role to drive initiatives related to sustainable financing.
“In particular, a number of banks have put up Sustainable Energy Finance Desks, which serve as a point of contact in evaluating and monitoring sustainable energy projects. These encourage enterprises to engage in renewable energy projects,” Mr. Diokno said in his speech at the event held in Taguig, also noting lenders that have issued green bonds such as BDO Unibank, Inc.’s $150 million green bonds and Bank of the Philippine Islands’ $300 million ASEAN green bonds.
Mr. Diokno also said the BSP will conduct a study on the role of central banks in addressing climate and environment-related risk to monetary, financial, and broader macroeconomic stability. — Luz Wendy T. Noble