European asset manager Amundi announced that it will manage the Global Green Bond Initiative (GGBI) Fund, a new fund launched by the EU in partnership with development finance institutions (DFI), aimed at mobilizing private institutional capital through green bonds for climate and environmental projects in EU partner countries, with a particular focus on emerging markets and developing economies.
The fund is being launched with a target fund size of up to €3 billion, including close to €1 billion in equity from multilateral development banks (MDBs) and DFI investors, with the objective of crowding up to €2 billion from private investors.
The new green bond fund forms the flagship initiative of the EU’s “Global Gateway” strategy, which aims to mobilize up to €20 billion of private capital for large-scale sustainable infrastructure projects, with a focus on low and middle-income countries.
Valérie Baudson, Chief Executive Officer of Amundi, said:
“Unlocking capital is critical to enabling greater participation by emerging markets in the energy transition. To this end, blended finance offers a unique opportunity to deploy capital that delivers both sustainable impact and financial returns.”
The new GGBI fund is intended to act as an anchor investor in primary green bond issuances, helping to attract additional private investment to finance climate and environmental projects.
The fund, announced by the EU Commission on Friday, will invest exclusively in bonds issued in primary markets, prioritizing first-time issuers including governments, local authorities and businesses, with at least 20% of investments targeting the world’s least developed countries.
EU Commission President Ursula von der Leyen, said:
“Together with our partners we are reshaping how the world funds its future. This is more than finance; it’s a strategic choice to align economic resilience with climate justice – for our planet and for generations to come.”
The GGBI consortium is led by the European Investment Bank (EIB) and includes the Spanish Agency for International Development Cooperation (AECID), the Italian Development Bank Cassa Depositi e Prestiti (CDP), the European Bank for Reconstruction and Development (EBRD), the Dutch Entrepreneurial Development Bank FMO, the German Development Bank KfW, and the French DFI Proparco.
Nadia Calviño, President of the EIB Group, said:
“As the financial arm of the EU, the European Investment Bank is proud to lead this new consortium for the Global Green Bond Initiative. It will strengthen global capital markets and help us to mobilise private finance to build sustainable infrastructure projects contributing to stability and shared prosperity around the world.”
