IFC and HSBC Asset Management have joined forces to launch a specialized fund vehicle aimed at corporate bond issuers in emerging markets.
This initiative seeks to enhance access to finance and promote sustainable growth. IFC is renowned for its development projects and investment efforts across global markets, while HSBC AM stands out as a major player in global asset management, emphasizing innovative investment strategies.
The purpose of this partnership is to augment the existing HSBC Global Emerging Market Corporate Sustainable Bond Strategy by investing in publicly listed bonds issued by corporations and financial institutions within EM. This will not only increase the financial resources available for sustainable projects but also emphasize transparency and sustainability at the issuer level.
IFC focuses on international development, providing investments and advisory services to build the private sector in developing countries. Meanwhile, HSBC AM manages assets across a broad range of markets, specializing in high-quality and sustainable investment solutions.
This collaboration aims to significantly impact sustainable growth and development in emerging markets. By investing in areas such as sustainable technologies and social impacts, the partnership is set to address the unique challenges and opportunities in these regions.
In addition to bolstering the bond strategy, IFC will contribute a proposed $100m as an anchor investment in the fund. This move is intended to mobilize more institutional investors and expand the capital pool available for sustainability-related transactions in EMs.
Nicolas Moreau, CEO of HSBC Asset Management, highlighted the strategic importance of this partnership: “We are pleased to expand our partnership with IFC, which dates back to 2019 following the launch of HSBC Real Economy Green Investment Opportunity GEM Bond Fund (REGIO)2, as we reinforce our contribution to improved sustainability in emerging markets and help support our clients’ sustainable investment objectives. We hope this collaboration demonstrates the financial market opportunity in funding sustainability to help bridge the financing gap for EM corporate issuers whose activities are aligned with and positively contribute to the UN’s Sustainable Development Goals.”
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