HSBC Holdings' asset management division is collaborating with the International Finance Corporation (IFC) to establish a joint fund aimed at supporting corporate bond issuers in emerging markets. The fund will adhere to the European Union's strictest sustainability standards, known as Article 9.
The goal of this fund is to mobilize institutional investors and expand the pool of capital available to emerging market issuers pursuing sustainable objectives. According to Nicolas Moreau, CEO of HSBC Asset Management, the partnership seeks to demonstrate the opportunities financial markets can offer for sustainable development. By doing so, it aims to help bridge the financing gap for emerging market issuers whose activities align with and contribute positively to the United Nations' Sustainable Development Goals.
The fund will invest in publicly listed bonds of emerging market corporations and financial institutions, focusing on areas such as sustainable technology and social impact. This initiative continues the collaboration between HSBC and IFC, which began in 2019.
