HSBC and IFC Raise over $530 Million for Emerging Markets-Focused Green Bond Fund
HSBC Asset Management and World Bank Group member the International Finance Corporation (IFC) announced the final close of the HSBC Real Economy Green Investment Opportunity GEM Bond Fund (REGIO), with total investor commitments of $538 million for the emerging markets-focused green bond fund.
Stephanie von Friedeburg, IFC Senior Vice President, Operations, said:
“Investing in green bonds is not just about fighting climate change –it’s about paving the way for lasting, positive change. The final closing of REGIO reflects IFC’s commitment to innovation, partnerships, and impact investing across emerging markets and demonstrates the continued relevance of capital markets in the transition to low carbon economies.”
REGIO aims to enable investors to align their financial objectives with real economy impact against the Paris Climate Agreement and Sustainable Development Goal agenda. The fund invests in a diversified portfolio primarily comprised of emerging market green bonds and other similar bonds, principally issued by corporate issuers. The fund focuses on delivering impact in primarily lower Gross National Income (GNI) countries, aiming to help to help the most threatened economies in their transition to a low-carbon future by further increasing access to climate finance and promoting the development of sustainable capital markets through a broader range of issuers.
HSBC Asset Management and IFC launched the fund in 2019, with anchor investor commitments of $75 million each. The fund now has a total of ten other investors. Investors in the final close of the fund included PROPARCO, a subsidiary of Agence Française de Développement (AFD) and Cassa Depositi e Prestiti S.p.A. (CDP), the Italian National Promotional Institution.
Nicolas Moreau, CEO, HSBC Asset Management, said:
“The emphasis that we need to place on helping economies transition sustainably is more significant than ever before. Climate change is one of the main risks of our lifetime and for REGIO to close at this size during a global pandemic highlights how important combatting it is to investors and we are thankful to them for their support.”