Christopher Flensborg is not in danger of overstaying his welcome in the U.S.
The Stockholm-based merchant banker for SEB (Skandinaviska Enskilda Banken AB) has been in the U.S. since the beginning of March, helping educate institutional investors and other SEB staff on the rewards and risks of the World Bank's Green Bond. Mr. Flensborg, one of the creators of the bond, said he plans to remain in the country at least another two months because demand for the bonds has been high.
“The reason why we see all this interest is that it's an easy way to implement governance,” Mr. Flensborg said. “In terms of financial strength and legal terms, the product is the same as other World Bank issues. Monitoring and reporting are outsourced to the World Bank and the return is comparable to similar investments.”
Since the first Green Bond was issued in 2008, about $1.4 trillion has been invested in them globally, with roughly $480 million of that coming from U.S.-based institutions.
Those institutions include the $132.6 billion California State Teachers' Retirement System, the $129.4 billion New York State Common Retirement Fund and the $36.6 billion United Nations Joint Staff Pension Fund. Specific amounts invested by these institutions were not available.
Proceeds from the sale of AAA-rated Green Bonds are used to fund projects financed by the World Bank that seek to mitigate climate change. — Gregory Crawford