By Tom Arnold
LONDON, May 20 (Reuters) - HSBC Global Asset Management and
IFC, a member of the World Bank Group, announced on Wednesday
the closing of a green bond fund, raising $474 million for
investments aimed at mitigating risks from climate change in
emerging markets.
The HSBC Real Economy Green Investment Opportunity GEM Bond
Fund (REGIO) will use public and private capital to help
emerging markets transition to cleaner forms of energy and limit
the effects of climate change.
HSBC and IFC each committed $75 million to the fund
as anchor investors, while seven private investors have now
joined for the third closing of the fund. Others are expected to
commit later this year, HSBC and IFC 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," said
Nicolas Moreau, global chief executive, HSBC Global Asset
Management.
Public and private-backed fund initiatives to help fight
climate change in emerging markets are gaining traction.
In January, BlackRock said it would provide the first $100
million of funding for the Climate Finance Partnership (CFP),
which was set up in 2018 by France, Germany and the Hewlett and
Grantham charitable foundations.
Focusing on a range of countries and companies, REGIO will
invest through a portfolio of green and sustainable bonds, with
the investment activities complemented by a technical assistance
facility managed by IFC. It gave no details on specific
projects.
“The success of this fundraising is proof that investors
remain committed to fighting climate change, even at this time
of global pandemic," said Philippe Le Houérou, IFC chief
executive.
(Editing by Alison Williams)
HSBC Holdings (HSBA)