IFC, a member of the World Bank Group, and HSBC Asset Management (HSBC AM) have announced a partnership to establish a specialised fund aimed at supporting corporate bond issuers in emerging markets, with a focus on sustainable growth. The new fund, targeting emerging market corporate bonds, will increase access to finance and contribute to sustainable development in the regions.
The fund, aligned with HSBC Global Emerging Market Corporate Sustainable Bond Strategy, will invest in publicly listed bonds issued by corporations and financial institutions across emerging markets. The initiative is classified as Article 9 under the Sustainable Finance Disclosure Regulation (SFDR), highlighting its strong focus on sustainability and transparency at the issuer level.
The partnership seeks to bridge the financing gap in emerging markets, where over 80% of the world’s population resides, but a smaller portion of global financing is directed. The fund will support investments in sustainable technologies and social impact projects, further advancing progress toward the United Nations Sustainable Development Goals (SDGs) and the Paris Agreement.
As part of the initiative, IFC will make a $100 million anchor investment in the HSBC Global Emerging Markets Corporate Sustainable Bond strategy. This strategy focuses on generating measurable environmental, social, and governance (ESG) impact by investing in bonds that contribute to the UN SDGs, furthering sustainable economic development in emerging markets.
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 mobilise additional institutional investors and increase the pool of capital dedicated to sustainability-related transactions in emerging markets.”
Nicolas Moreau, CEO of HSBC Asset Management stated, “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.”
IFC’s involvement in the initiative highlights its experience in EM investments and leadership in ESG and sustainability. The fund is expected to attract further institutional investment, accelerating progress toward SDG objectives and enhancing the impact of third-party capital in emerging market corporate bond investments.
