Green Bonds are fixed income securities designed to raise capital to finance the low carbon environment
The sector has grown significantly in recent years. In 2015 the green bonds market issuances was in excess of $29.66 bn. In 2016 this is rising to over $77.5 bn (ref: Climate Bonds Initiative). In early 2014 Barclays became a signatory to the Green Bond Principles.
As part of our commitment to the Green Bonds sector, in 2014 Barclays announced we would invest a minimum of £1bn by November 2015 to form part of our liquid asset buffer. In November 2015 Barclays' Treasury department confirmed it had reached this target and made a second commitment to invest a further £1bn.
This represents one of the largest Green Bond investments commitments by any institution globally.
Barclays has undertaken a thorough review to establish the social and environmental credentials of the proposed investment portfolio, including engaging with the issuers and also the leading NGO in this area, Climate Bonds Initiative.
Corporate and Investment Bank
Our Corporate and Investment Bank has also been active in this sector, executing green bonds for a variety of clients including municipalities, corporations and supranational organisations. In 2015, we underwrote $1.9bn of deals, representing nearly 5% of the market, and in 2016 we underwrote a further $2.0bn (source: Bloomberg).