Investing for the transition
HSBC Global Asset Management and IFC, a member of the World Bank Group, today announced the third closing of the HSBC Real Economy Green Investment Opportunity GEM Bond Fund (REGIO), which has raised $474 million of new financing to support climate risk-mitigation investments across emerging markets in spite of prevailing market turmoil.
Emerging market countries have been hit by some of the worst impacts of climate change and many are insufficiently equipped to address them. REGIO is designed to attract investments into these economies, enabling their energy transition and helping them limit the effects of climate change. The first green bond fund focused on emerging market real sector issuers, REGIO will use both public and private capital to build climate change-mitigation capacity in emerging market economies.
Noel Quinn, Group Chief Executive, HSBC, said: “At HSBC we have a long history of connecting markets with opportunities and we recognise that economic growth must be sustainable over the long term. Investors want more socially and environmentally responsible investment opportunities and funds such as REGIO are a way for them to achieve their sustainable objectives.”
The fund provides a solution for global institutional investors to achieve impact and generate sustainable returns at the same time. The fund will invest in a diverse range of geographies and companies in the real sector through a diversified portfolio of green and sustainable bonds.
Nicolas Moreau, Global CEO, HSBC Global Asset Management, said: “We are at a tipping point in terms of climate change and investing in the real economy in emerging markets is critical to achieving the global transition to a lower carbon economy. Funds such as REGIO prove how we can achieve real economy impact in the markets that are most challenged by it.”