Barclays today confirmed it has reached its target of investing over £1 billion in Green Bonds and has made a commitment to invest a further £1 billion. This represents one of the largest Green Bond investment commitments by any institution globally.
Last year Barclays announced its commitment to investing at least £1 billion by November 2015, as part of its liquid asset buffer.
Green Bonds are fixed income securities designed to raise capital to finance the low carbon environment. Barclays’ Treasury department has expanded its Green Bonds portfolio across various investment grade issuers including the European Investment Bank and KFW.
In 2014 the green bonds market totalled $36.59bn and current issuance for 2015 stands at $29.66bn*
Commenting on this investment, Tushar Morzaria, Group Finance Director, Barclays, said:
"Barclays has undertaken thorough due diligence to establish the social and environmental credentials of the proposed investment portfolio, including engaging with the issuers and also the leading NGO in this area, Climate Bonds Initiative."
Sean Kidney, CEO of the Climate Bonds Initiative said:
"Addressing the risk of catastrophic climate change requires commitment; Barclays have shown that commitment can be combined with investing that achieves required returns at the same time. They have shown that, when it comes to the green bonds space, green can and does go with good investment. The one billion marker is a celebration of that."