Everence and Praxis commit $2 million to new World Bank Green Bond

Impact bonds |

Making a positive impact through investments

Everence Association and the Praxis Intermediate Income Fund have committed $2 million (or $1 million each) in the latest Green Bond offering from the World Bank.

In total, 17 investors – including Everence and Praxis – have invested in this latest Green Bond offering. Proceeds from the Green Bond will be used to provide global solutions to climate change, as well as economic opportunities and higher standards of living for people in developing countries. Examples of these opportunities supported by these bonds include:

  • Off-grid solar and wind installations
  • Greater efficiency in transportation
  • Waste management
  • Energy efficient housing construction
  • Carbon reduction through reforestation and deforestation prevention
  • Protection against floods through reforestation
  • Food security improvement and stress-resilient crops

The World Bank has issued approximately $4 billion in Green Bonds since their introduction in 2008. The World Bank is a global development cooperative owned by 186 member countries whose goal is to help overcome poverty and improve standards of living for people worldwide.

Praxis was one of the first United States investors to participate in Green Bond offerings from the World Bank. To date, over 10 percent of the Praxis Intermediate Income Fund is invested in green bonds, community investments and other high social impact bonds to support alternative energy, immunization, medical research and local infrastructure improvements.

Everence

Author

Praxis staff

Disclosure

Bond funds will tend to experience smaller fluctuations in value than stock funds. However, investors in any bond fund should anticipate fluctuations in price, especially for longer-term issues and in environments of rising interest rates.

As of Aug. 31, 2013, the Praxis Intermediate Income Fund had invested 0.88 percent of its assets in World Bank (International Bank for Reconstruction and Development) Green Bonds and 1.23 percent of its assets in International Finance Corp (a World Bank Group member) Green Bonds. Fund holdings are subject to change. To obtain holdings as of the most previous quarter, visit www.praxismutualfunds.com.