East Asia-Pacific central banks go green through Asian bond fund

This is aimed at further establishing local currency-denominated green bond markets in the region.

The Executives’ Meeting of East Asia-Pacific Central Banks (EMEAP) announced its members have agreed to push for green bonds through the Asian Bond Fund (ABF). 

The Asian Bond Fund is intended to further deepen local currency-denominated green bond markets in the region. 

“From this viewpoint, the EMEAP ABF Oversight Committee has requested IHS Markit, an index provider of the iBoxx ABF Index, that it reviews the rule of the Index to promote the inclusion of green bonds,” the Hong Kong Monetary Authority said in a statement. 

This means that the details will be based on the outcome of the review and disclosed once confirmed by IHS Markit.

The current ABF was established in 2005 to support the development of local currency-denominated bond markets in the region. 

The ABF, comprising the Pan-Asia Bond Index Fund and eight single-market funds, tracks the iBoxx ABF Index and is managed passively by private-sector fund managers with the BIS as the administrator. 

It invests in local currency-denominated bonds in EMEAP economies other than Japan, Australia, and New Zealand.