The Philippine central bank again redirected capital for sustainability initiatives by investing in the Asian Green Bond Fund of the Bank for International Settlements (BIS).
Launched this year, the new fund will support green projects in the Asia-Pacific region.
“The participation in the fund is expected to provide the BSP with an additional source of return and investment diversification that is consistent with our prudent approach to reserve management,” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said in a statement on Wednesday.
“The BSP’s decision to invest in the fund bolsters our sustainability efforts and supports our sustainable central banking agenda,” he added.
The BSP did not disclose the exact amount of the investments into the fund.
The dollar-denominated and open-ended fund was unveiled by the BIS this year through a collaboration with development finance institutions and an advisory committee consisting of various central banks.
In 2021, the BSP invested $550 million in the BIS green bond fund.
While Mr. Diokno earlier said they do not have a particular target for the central bank’s sustainable investments, he said the BSP’s green bond contributions could hit $1 billion by 2023.