LONDON (Alliance News) - Barclays PLC Monday said it will invest a minimum of GBP1.0 billion in Green Bonds, or fixed income securities designed to raise capital to finance the low carbon environment, which will form part of its liquid asset buffer.
In a statement, the British bank said its Treasury department will be building on its existing Green Bonds portfolio, which currently stands at about GBP430.0 million, across various investment grade issuers, including the World Bank.
"Every so often, market innovation and social imperatives come together to create something exciting that has the potential to make a real difference. The Green Bond sector is a fast-growing and powerful example of this synthesis," Finance Director Tushar Morzaria said.
Barclays said its Treasury team will continue to consider investments in new supra-national organisations and government issued bonds as they become available. The bank will review its commitment to the Green Bonds sector on an ongoing basis, with the potential to increase it depending on overall growth of the sector.
Barclays also said it remains committed to contributing to the growth of this sector on the underwriting and distribution platform.
Citing Bloomberg, Barclays said the Green Bonds market could surpass USD40.0 billion in 2014, three times its size in 2013, at the current rate of growth.
Barclays shares were Monday quoted down 0.2% at 233.70 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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