International asset manager Robeco announced today the launch of RobecoSAM US Green Bonds, one of the first US-focused green bond strategies in Europe. Robeco partnered with Quintet Private Bank on the launch of the new fund, with Quintet targeting an initial commitment of €125 million.

According to Robeco, the new strategy is being introduced ahead of an anticipated boom in green debt issuance in the US, as the Biden administration ramps climate action over the next several years, including plans for massive investments in renewable energy and sustainable infrastructure.

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A recent report from the Climate Bonds Initiative indicated significant growth in the US sustainable debt market, but noted that the market is highly concentrated, with mortgage financing company Fannie Mae’s green MBS issuances accounting for 39% of overall volume, while local and state-backed government entities green US Municipal bonds making up another 23%. The Biden administration’s renewed climate focus and opportunities for billions in clean energy spend are expected to drive meaningful market proliferation and growth.

Christoph von Reiche, ExCo Member and Global Head of Sales at Robeco, said:

“The RobecoSAM US Green Bonds strategy perfectly fits Robeco’s strategic ambitions in sustainable investing in general and our focus on climate-related risks in particular. We are excited to have Quintet as our launch partner and look forward to providing our other clients with an excellent opportunity to participate in the largest economy in the world opening up to greener investments.”

RobecoSAM US Green Bonds will be managed by Robeco’s Michiel de Bruin, Executive Director, Global Fixed Income Macro and Peter Kwaak, Portfolio Manager, Executive Director, Credit Investments. The fund will invest in USD-denominated green bonds issued by corporates, government-related agencies and governments, utilizing a proprietary screening process to ensure the green credentials of the securities.

Jakob Stott, Group CEO at Quintet, said:

“As the recent floods in Europe demonstrated with devastating clarity, mitigating the impact of climate change is an urgent, universal challenge. At Quintet – where we place sustainability at the heart of our business and as the driving force behind our clients’ investments – we are very pleased to partner with Robeco’s experienced team as we continue to bring our sustainability strategy to life, meeting client needs and contributing to a brighter future.”