HSBC Global Asset Management is planning to launch green bond fund, HSBC Real Economy Green Investment Opportunity GEM Bond fund (REGIO).
The fund's aim will be to enable investors to achieve real economy impact to deliver against the Paris Climate Agreement and Sustainable Development Goals.
IFC and HSBC intend to commit up to $100m and up to $75m respectively to the fund.
HSBC Global Asset Management has also issued a ‘Green Impact Framework' which will support the fund. The aim of the framework is to show potential bond issuers the eligibility criteria it will be considering when selecting green bonds for REGIO. It is expected that this framework will also encourage transparency and knowledge sharing amongst investor and issuer communities.
REGIO will target real economy issuers in global emerging markets (GEM) in order to increase access to climate finance and promote the development of sustainable capital markets by broadening the range of issuers. The fund will provide geographically and sectorally diversified investment opportunities. It will look to harness at least $500m to $700m in capital, largely through bonds issued by non-financial or real sector companies in EM countries, to promote the United Nations' (UN) Sustainable Development Goals.
A version of this article was first published by Investment Europe, a sister title to International Investment.