Bank of America Merrill Lynch is planning to offer its wealth management customers World Bank “green bonds,” which will fund low-carbon development, on a periodic basis.

The first offering was launched in the second quarter of 2011, and will mature on 24 May 2021, paying a 3.5 per cent coupon for the first year and switching afterwards to a floating three-month US dollar Libor coupon. The bonds are offered through Merrill Lynch’s Global Wealth Management platform.

The investments are triple-A rated, and provide a comparable return to other World Bank bonds, the firm said. However, they will only finance projects in the international organization’s member countries that meet specific criteria for low carbon development. These include alternative energy installations, funding for new technologies that reduce greenhouse gas emissions, reforestation, watershed management and flood protection.