KfW issues green bond to be included in Solactive Green Bond Index
The German government-owned development bank KfW has now issued its first green bond.
The new bond will be included in the Solactive Green Bond Index as of late July. The Solactive Green Bond Index launched in March 2014.
“The launch of one more green bond this year by KfW, following those of the World Bank and Unilever, shows how fast this market has been growing over the past couple of years. As green bonds are getting more attention and thus traction in the market, we hope that the Solactive Green Bond Index will be a useful tool either as a benchmark or an underlying for financial products” comments Astrid Ludwig, head of the Bond & Complex Team at Solactive.
The Green Bond concept was developed in 2007 by the World Bank and the European Investment Bank. Green bonds are now commonly defined as fixed-income securities that raise capital for a project with specific environmental benefits, where the proceeds go to climate mitigation or adaptation efforts.