HSBC, IFC launch SDG-focused emerging markets sustainable corporate bond fund

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🗞️ Driving the news: HSBC Asset Management and the International Finance Corporation (IFC) have announced a new fund aimed at boosting sustainability in emerging markets by targeting SDG-aligned corporate bond issuers
• IFC will invest $100 million in the fund to support HSBC's Global Emerging Markets Corporate Sustainable Bond strategy

🔭 The context: This fund follows previous successful collaborations, including the HSBC Real Economy Green Investment Opportunity (REGIO) GEM Bond Fund, which closed with nearly $540 million in commitments
• The new fund will focus on sustainable technologies, social impact, and a just transition in emerging markets

🌍 Why it matters for the planet: The fund aims to accelerate sustainability transitions in emerging markets, contributing to the UN Sustainable Development Goals (SDGs) and helping close the financing gap for green initiatives in these regions

⏭️ What's next: Classified as an Article 9 fund under the SFDR, the initiative is expected to attract additional institutional investors and increase the capital pool for sustainability-focused projects in emerging markets

💬 One quote: “We hope this collaboration demonstrates the financial market opportunity in funding sustainability” - Nicolas Moreau, CEO of HSBC Asset Management

📈 One stat: The HSBC Real Economy Green Investment Opportunity (REGIO) GEM Bond Fund closed with nearly $540 million in investor commitments in 2022

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