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S&P Dow’s new index captures ‘most liquid’ part of green bond market
By Wendy Van Sickle
Columbus, Ohio, March 9 – S&P Dow Jones indices launched its S&P Green Bond Select index to capture the most liquid and tradeable segment of green-labeled bonds issued globally, according to a press release.
The index has been licensed to VanEck for an exchange-traded fund.
The index uses market value-weighted characteristics of the S&P Green Bond index to measure the performance of green-labeled bonds that finance environmentally friendly projects.
To be eligible for inclusion, green bonds must fulfill a strict set of requirements, including being designated “green” by the Climate Bonds Initiative and having a debt rating aligned with its credit quality and a minimum outstanding par value.
“We continue to see strong demand for investment opportunities that incorporate environmental, social and corporate governance (ESG) factors,” Reid Steadman, deputy head of product management at S&P Dow Jones Indices, said in the release. “The S&P Green Bond Select index is a benchmark for market participants seeking to monitor developments in this critical area of green finance.”
“We are seeing increasing interest from investors for ways to build sustainable, environmentally-conscious portfolios, but until now they have had few investible fixed-income index solutions,” Edward Lopez, head of ETF product management and marketing at VanEck, added.
“We believe the S&P Green Bond Select index provides an excellent foundation for financial products such as ETFs, which can provide efficient and cost-effective access to the green bond market.”
S&P Indices is part of New York-based McGraw-Hill Cos.
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