Solactive publishes white paper on Development Bank bonds

by , 4th December 2018

Frankfurt-based index provider Solactive had a busy week last week announcing the launch of its Sharing Economy Index, the launch of Global X’s e-commerce ETF tracking its index as well as releasing a white paper on Multilateral Development Bank Bonds.

The white paper is named “Multilateral Development Bank Bonds: A Rewarding Investment for a Better Society”. It discusses the functionality of a Multilateral Development Bank (MDB) in light of the latest trend of Socially Responsible Investing (SRI) and Environmental, Social and Governance (ESG) strategies.

An MDB is the result of a collaboration of multiple sovereign governments which sets an objective to fund developing countries. It uses the proceeds collected from issuing bonds in international capital markets to finance projects within struggling economies. These projects are to improve social and economic impact in emerging countries.

The report hopes to bring exposure to these development bank bonds which many investors are likely to have missed by explaining the purpose and whether the bonds are appealing.

Solactive released it UBS Development Bank Bond Index Family back in spring. The family contained indices covering Development Bank issued Bonds, MDB issued bonds and World Bank issued bonds. This includes its recently released MDB Bond index which will be tracked by the Sustainable Development Bank Bonds UCITS ETF.