Bank of America Merrill Lynch said on Friday it would offer World Bank-backed green bonds to its wealth management clients, capturing returns from investments in low-carbon projects in emerging economies.
The World Bank has issued such bonds previously, using its high credit rating to help raise funds for renewable ener gy projects in developing countries.
The world must invest an extra $200 billion or more each year in the energy sector to cut carbon emissions, various reports and academics calculate.
CO2 emissions from burning fossil fuels last year rose at their fastest rate in four decades, and at more than twice the annual average, data from the energy company BP showed on Wednesday.
"The first World Bank Green Bonds to be offered through BofA Merrill Lynch were launched in the second quarter of 2011," Bank of America said in a statement on Friday.
"Those bonds, which will mature on May 24, 2021, pay a 3.5 percent coupon for the first year that switches to a floating three-month USD-Libor based coupon after one year."
Article courtesy of reuters.com