HSBC Asset Management and IFC have announced the close of the HSBC Real Economy Green Investment Opportunity GEM Bond Fund having raised $538m.
The climate-focused green bond fund, which is known as REGIO, has 10 investors which was launched in 2019 when both HSBC and IFC (part the World Bank Group) each committed $75m to the strategy. Investors in the fund include Aviva France and Cardif Assurance Vie, Gothaer Asset Management, and Danish pension fund Lærernes Pension.
REGIO uses both public and private capital to provide investors with a diversified vehicle to invest in individual green bond transactions, or to complement an existing EMD allocation with a green impact bond solution. HSBC says the strategy targets markets that are most at threat from the effects of climate change and seeks to accompany these 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.