• Boosting sustainability: The new fund targets corporate bond issuers in emerging markets to increase sustainable financing.
• Strategic collaboration: IFC’s $100 million anchor investment supports HSBC AM’s existing bond strategy for ESG-driven growth.
• Closing the gap: The initiative aims to bridge the financing gap in emerging markets, supporting UN SDG-aligned activities.

Driving Sustainable Growth in Emerging Markets

The International Finance Corporation (IFC), a member of the World Bank Group, and HSBC Asset Management (HSBC AM) have deepened their partnership by establishing a specialized fund vehicle. This initiative targets corporate bond issuers in emerging markets, with the goal of increasing access to finance and promoting sustainable growth.

The new fund will support HSBC’s Global Emerging Market Corporate Sustainable Bond Strategy by investing in publicly listed bonds issued by corporate and financial institutions across emerging markets. The fund is classified as Article 9 under the Sustainable Finance Disclosure Regulation (SFDR)—the highest level of classification for sustainability.

Mobilizing Capital for Green Transition

IFC’s investment is expected to attract additional institutional investors, bolstering the pool of capital dedicated to sustainability-related transactions in emerging markets.

“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,” said Mohamed Gouled, Vice President of Industries, IFC.

Expanding the Partnership

The collaboration is not new. Since 2019, IFC and HSBC AM have worked together through the launch of the HSBC Real Economy Green Investment Opportunity GEM Bond Fund (REGIO). The current expansion reaffirms their commitment to sustainable finance in emerging markets, with a focus on green technologies and social impact projects.

Nicolas Moreau, CEO of HSBC Asset Management, highlighted the significance of this continued partnership: “We are pleased to expand our partnership with IFC, as we reinforce our contribution to improved sustainability in emerging markets and help support our clients’ sustainable investment objectives.”

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Bridging the Financing Gap

Emerging market countries comprise over 80% of the world’s population, but they capture a much smaller share of global financing. The IFC-HSBC initiative aims to address this disparity by boosting private finance to support the United Nations Sustainable Development Goals (SDGs) and Paris Agreement commitments. This strategic collaboration is positioned to elevate the impact of third-party capital and make a measurable contribution to sustainability across emerging markets.