“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,” Nicolas Moreau, the chief executive of HSBC Asset Management, said in the statement.
The fund will invest in publicly listed bonds issued by corporate and financial institutions in emerging markets, with a view to financing areas such as sustainable technologies and social impact.
The arrangement extends an ongoing collaboration between HSBC and IFC that dates back to 2019.
The decision to register the fund as an Article 9 product “places a strong emphasis on issuer-level sustainability and transparency beyond just an issuance’s use-of-proceeds”, Mohamed Gouled, vice president of Industries at IFC, said in the statement. “IFC’s investment is expected to mobilise additional institutional investors and increase the pool of capital dedicated to sustainability-related transactions in emerging markets.”
