Bank of Korea Decides to Invest in BIS Asia Green Bond Fund

The Bank of Korea has decided to invest its foreign currency assets in the Green Bond Fund launched by the Bank for International Settlements (BIS) to support central banks' green financial investments.

On the 25th, the Bank of Korea announced that it had joined the 'BIS Asian Green Bond Fund,' which was launched on the 24th.

This fund was launched through consultations between the BIS, the Asian Consultative Council?a cooperative body of 13 Asian member central banks including the Bank of Korea?and the Asian Development Bank, and is managed by the BIS Asset Management Department.

The fund invests in US dollar-denominated green bonds issued in the Asian region, including government bonds, government agency bonds, international organization bonds, and corporate bonds.

BIS previously launched a US dollar green bond fund in September 2019 and a euro green bond fund in January last year, aiming to promote central banks' foreign currency asset investments in green bonds.

The Bank of Korea explained that it decided to participate in the BIS Asian Green Bond Fund as part of its gradual expansion of ESG (Environmental, Social, and Governance)-related investments.

Through expanding green bond investments, the Bank expects to meet the public accountability requirements of foreign currency asset management while also contributing to the activation of the green finance market.

As of the end of last year, the Bank of Korea's ESG-related assets totaled approximately 9.02 billion US dollars. Among directly invested assets, ESG-related bonds such as green bonds amounted to 5.82 billion US dollars, and ESG-applied equity and bond funds within entrusted assets totaled 3.2 billion US dollars.

This content was produced with the assistance of AI translation services.