Investing for the transition
HSBC Asset Management and IFC, a member of the World Bank Group, today announced the final closing of the HSBC Real Economy Green Investment Opportunity GEM Bond Fund (REGIO), boosting access to climate finance and helping further develop the market for green bonds. REGIO, the first green bond fund focused on well-diversified climate-smart investments in “real economy” issuers in emerging market countries , closed with total investor commitments of USD538 million as at 29 January following further investment from two European investors.
The REGIO fund has a blended finance objective which will aim to enable professional investors to align financial return objectives with real economy impact to deliver against the Paris Climate Agreement and Sustainable Development Goals.
REGIO uses both public and private capital to build climate change-mitigation capacity in the markets that are most at threat from the effects of climate change. The aim of the fund is to help these economies in their transition to a low-carbon future by further increasing access to climate finance and promoting the development of sustainable capital markets through a broader range of issuers.
Nicolas Moreau, CEO, HSBC Asset Management, said: “The emphasis that we need to place on helping economies transition sustainably is more significant than ever before. Climate change is one of the main risks of our lifetime and for REGIO to close at this size during a global pandemic highlights how important combatting it is to investors and we are thankful to them for their support.”
“At HSBC we have a long heritage in connecting the world to emerging markets and these countries face significant challenges to overcome the rapid effects of climate change. As investors we believe that investing in them today creates opportunities for tomorrow, and that by working through public and private partnerships, we can create investment solutions while simultaneously discovering ways to address global sustainability challenges.”