Recently, we wrote an article about the explosion of Green Bonds this year, but most are still for institutional investors.
Now, issuers are beginning to experiment with bonds appropriate for retail investors. In conjunction with Merrill Lynch
Wealth Management, the World
Bank is introducing a 10-year AAA $12 million bond. It offers 2.32% interest for the first 5 years, gradually rising to 8.82%. It’s the first green bond that’s "callable" – after the first year.
Verified as investing in valuable green projects by CICERO, the bond is available to Merrill Lynch Wealth Management clients. Eligible projects include reforestation, watershed management and flood protection and renewable energy projects, among others.
Issued on August 27, there’s already been strong demand from clients. "Clients turn to us for opportunities to express their social, political and environmental values through their investments," says Andy Sieg, head of Global Wealth and Retirement Solutions for Bank of America Merrill Lynch.
The growth of Green Bonds:
Read our article, Green Bonds Go Through the Roof!
More information on World Bank Green Bonds:
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