HSBC Global Asset Management and the International Finance Corporation have raised $474m for a fund to support climate risk investments in emerging markets.

The HSBC Real Economy Green Investment Opportunity GEM Bond Fund will use both public and private capital to build climate change-mitigation capacity in emerging market economies. HSBC and IFC each committed $75 million to the fund as anchor investors. HSBC says the fund will invest in a diverse range of geographies and companies via a portfolio of green and sustainable bonds.