The International Finance Corporation (IFC) and HSBC Asset Management have announced a new sustainable emerging markets corporate bond fund.

The fund will invest in publicly listed bonds issued by corporate and financial institutions in emerging markets. The HSBC Global Emerging Markets Corporate Sustainable Bond will be classified as Article 9 under the Sustainable Finance Disclosure Regulation (SFDR). HSBC says that the collaboration between IFC and HSBC AM aims to drive sustainable growth and impact in emerging markets by investing in key areas such as sustainable technologies and social impact. IFC will support the strategy with a proposed $100 million anchor investment in the fund.

Mohamed Gouled, Vice President of Industries, IFC, said, “By aligning with SFDR Article 9, which places a strong emphasis on issuer-level sustainability and transparency beyond just an issuance’s use-of-proceeds, the HSBC corporate bond strategy will support the growth of sustainable businesses and accelerate their green transition. IFC’s investment is expected to mobilize additional institutional investors and increase the pool of capital dedicated to sustainability-related transactions in emerging markets.”

Nicolas Moreau, CEO of HSBC Asset Management, said, “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) , 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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