Alternative Investments/ESG: Mirae Asset Debuts Green Bond ETF In Hong Kong
The Global X Bloomberg MSCI Asia Ex Japan Green Bond ETF is listed on the Hong Kong stock exchange.
The Global X Bloomberg MSCI Asia Ex Japan Green Bond ETF, launched by Mirae Asset Global Investments, provides investors an opportunity to invest in investment grade, USD denominated green bonds from issuers located in Asia, but excluding Japan. The fund commenced trading on the Hong Kong Exchange on Friday. The fund has the distinction of being the world’s first ETF to provide access to green bonds of the Asia (Ex Japan) region. It is also Mirae’s first fixed income ETF. (CISION PR Newswire)
Green bonds are fixed income instruments whose proceeds are exclusively and formally applied to projects or activities that promote climate or other environmental sustainability purposes.
According to the Climate Bonds Initiative, the Asia Pacific region is the world’s second biggest issuer of green bonds with a cumulative total of US$371.7 billion in 2021, and the world’s fastest growing issuer with year-on-year growth of 129%.
The ETF tracks the Bloomberg MSCI Asia Ex Japan USD Green Bond Index. The index consists of government, government-related, corporate, and securitized bonds issued in Bangladesh, China, Hong Kong, India, Indonesia, Macau, Malaysia, Mongolia, Pakistan, Philippines, South Korea, Singapore, Sri Lanka, Taiwan, Thailand, and Vietnam. Only fixed-rate, investment grade, USD-denominated debt with a minimum par outstanding of at least $300m are eligible for inclusion.
Jung Ho RHEE, Chief Executive Officer of Mirae Asset Global Investments (Hong Kong) Limited, said: “With Asia Pacific accounting for around half of the world’s carbon emissions and temperatures in the region rising twice as much as the global average, urgent action is required to tackle climate change. The Global X Bloomberg MSCI Asia Ex Japan Green Bond ETF enables investors to align their portfolios with sustainability objectives and invest in climate action projects that have a positive environmental impact. Green bonds also offer the means for investors to access stable and sustainable income and can be used to add defensive resilience to portfolios”.
Related Story: Mirae Launches Three New Global X ETFs In Hong Kong
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