BlackRock has invested in short-term green Asset-Backed Commercial Paper (ABCP) developed by Credit Suisse to fund solar energy in the United States.
This investment channels capital from clients looking to invest cash sustainably. The notes were issued by Alpine Securitization LTD (a special purpose vehicle sponsored by Credit Suisse to issue ABCP).
The $1.22bn investment was made across BlackRock's global Money Market Funds (MMFs), including their environmentally focused MMF platform. The BlackRock Liquid Environmentally Aware Fund platform (LEAF), combines a proprietary ESG-driven credit approach with carefully selected screens to separate environmental leaders and laggards for inclusion.
Launched in 2019, the global series of funds have garnered over $15.7bn in assets from a diverse range of clients. 5% of the LEAF platform's net revenue is used to retire carbon offsets, and the platform aim to ensure that at least 80% of fund assets (which are not investments in government and public securities and instruments) have above average environmental practices as determined by MSCI or such other external ESG research provider used by the Investment Manager from time to time.
Thomas Callahan, head of BlackRock's Global Cash Management Business, comments: "Investors are increasingly seeking sustainable options for their cash management. We have been working to enhance the supply of green investments and in turn, provide a financing source for sustainable projects."
"Partnering with Credit Suisse on this issuance is an important advancement for the cash investment landscape, and we hope to provide our clients with further innovative green financing solutions in the future."
Jay Kim, Global head of Securitized Products at Credit Suisse, said: "As a pioneer in renewable energy finance, Credit Suisse is pleased to have arranged the first green ABCP note, helping to accelerate the energy transition with innovative transactions. Building on our strong track record in green and sustainable financing solutions, we're excited to work with partners like BlackRock who share in our mutual commitment to sustainable finance."
