IFC and HSBC Launch Fund to Boost Sustainable Corporate Bonds in Emerging Markets

The International Finance Corporation (IFC), part of the World Bank Group, has partnered with HSBC Asset Management (HSBC AM) to launch a specialized fund focused on corporate bond issuers in emerging markets.

This initiative aims to enhance access to finance and promote sustainable growth.

The new fund will complement the HSBC Global Emerging Market Corporate Sustainable Bond Strategy, investing in publicly listed bonds from corporate and financial institutions in these markets.

It will also be classified as Article 9 under the Sustainable Finance Disclosure Regulation (SFDR), indicating the highest level of sustainability compliance.

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.

He added, “IFC's investment is expected to mobilize additional institutional investors and increase the pool of capital dedicated to sustainability-related transactions in emerging markets.”

The collaboration between IFC and HSBC AM is set to enhance sustainable growth and impact in emerging markets by focusing on investments in sustainable technologies and social initiatives.

Despite accounting for over 80% of the world’s population, emerging markets attract a disproportionately small share of global financing, highlighting the urgent need for significant investment to facilitate their transition to a sustainable future.

The HSBC Global Emerging Markets Corporate Sustainable Bond Strategy aims to foster positive environmental, social, and governance (ESG) outcomes by investing in corporate bonds and related securities that align with the United Nations Sustainable Development Goals (UN SDGs).

This strategy also addresses the financing gap corporate issuers face in these markets. The IFC plans to make a $100 million anchor investment in the fund to strengthen this initiative.