BlackRock said on Thursday it invested US$1.22bn in the first-ever green asset-backed commercial paper created by Credit Suisse with the goal of financing the US solar energy industry.
The world's biggest asset manager, with nearly US$9trn under management, has been pushing for ESG investing. Chief executive officer Larry Fink's annual letter to top company executives last month urged companies to develop better ESG and sustainability disclosures.
“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," BlackRock’s head of global cash management business, Thomas Callahan, said in a statement.
Alpine Securitization Ltd, a funding vehicle of the Swiss bank, issued these ABCP at a time when there is growing investor demand for ESG-focus products.
"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," Jay Kim, Credit Suisse's global head of securitized products, said in a statement.
BlackRock's "Liquid Environmentally Aware Fund" platform (LEAF), which was launched in 2019, takes an ESG approach. Its global series of funds have grown to more than US$15.7bn in assets with 5% of the LEAF platform’s net revenue used to retire carbon offsets.
These LEAF funds - available in dollar, sterling and euros - have invested over US$1.77bn in green short-term debt issuance over the last 12 months, according to BlackRock.