HSBC Global Asset Management will launch a green bond fund from emerging markets later this year.
The fund will be based on the HSBC's "Real Economy Green Investment Opportunity" (REGIO) approach, offering institutional investors the opportunity to invest in emerging green corporate bonds.
It not only offers attractive return opportunities, but also supports states and companies in achieving the goals of the Paris Climate Agreement and the UN Sustainable Development Goals (SDGs).
HSBC Global AM has also developed its own "Green Impact Framework", which will underpin the fund, and will allow potential issuers to understand which sustainable criteria their bonds must meet in order for them to be included in the strategy.
The fund will provide at least $500m to $700m in capital, primarily to be invested in non-financial corporate bonds. At least 20 percent of the fund volume is to be invested in Africa, Asia, Latin America and Europe.
The anchor investor for the fund was the International Finance Corporation (IFC), which aims to invest up to $100m in the fund. The HSBC Group intends to increase the fund by up to $75m.