BAKU, Azerbaijan, October 2. The International Finance Corporation (IFC) and HSBC Asset Management (HSBC AM) have announced a strategic partnership to establish a specialized fund aimed at increasing financing access for corporate bond issuers in emerging markets, Trend reports via the IFC.
The collaboration seeks to accelerate sustainable growth by focusing on investments that contribute to environmental, social, and governance (ESG) goals.
This newly established fund will back the HSBC Global Emerging Market Corporate Sustainable Bond Strategy, focusing on publicly listed bonds issued by corporations and financial institutions in developing economies. The fund will hold an Article 9 classification under the Sustainable Finance Disclosure Regulation (SFDR), signaling the highest sustainability standards.
By combining efforts, IFC and HSBC AM aim to drive impactful investments in sustainable technologies and social initiatives across emerging markets. Although these markets account for over 80% of the global population, they capture only a small fraction of global financing. Significant investment is crucial to accelerate their transition toward a sustainable future.
IFC will serve as a key anchor investor, committing $100 million to support the strategy. The organization’s expertise in ESG and sustainable finance, alongside its history in emerging market investments, is expected to attract further institutional interest. The initiative aligns with the UN Sustainable Development Goals (SDGs) and aims to bridge the financing gap for corporate issuers in developing economies.
In light of the global drive to meet SDG and Paris Agreement targets, private investment in emerging markets remains essential. Through this partnership, IFC and HSBC AM aim to leverage third-party capital to make a measurable impact in the ESG space, fostering sustainable growth in regions that need it most.
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