NN Investment Partners BV introduced a new fund to invest in euro-denominated green bonds.
The NN Euro Green Bond Fund is expected to attract between 350 million to 400 million euros ($396 million to $453 million) in the next two to three years, according to lead portfolio manager Bram Bos.
“We consciously chose a euro fund because the green bond market in Europe is more developed than in other regions,” Bos said. “Moreover, the proximity enhances transparency and enables us to visit most issuers. Therefore we can better ensure clients that their investments are green.”
The fund will allow institutional investors to make a positive contribution to the environment at no additional costs, the Netherlands-based investment firm said in an e-mailed statement. It is expecting strong interest in green bonds from both retail and institutional investors.
NN Investment Partners expects corporate issuance to outpace supranationals, sub-sovereigns and agencies. It will use the green bond principles as the basis of its framework to choose what to invest in, Bos said.
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Financial services companies from banks to insurance companies are setting up specialized funds to invest in green bonds. HSBC said in November that it is spending $1 billion on a climate debt portfolio.
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