IFC, HSBC create first green bond fund focused on “real economy” issuers in emerging markets

The International Finance Corporation and HSBC Global Asset Management have created the first global green bond fund targeting “real economy” issuers in emerging markets, increasing access to climate finance and promoting the further development of green bond markets. 

IFC will provide a $100 million anchor investment in the fund. HSBC will invest up to $75 million. The fund will have a total life of up to 15 years, including a seven-year investment period.  

The Real Economy Green Investment Opportunity (REGIO) Fund is expected to catalyse at least $500 million to $700 million in multilateral and private sector capital to support well-diversified climate-smart investments in developing countries around the world - largely through green bonds issued by non-financial, or real sector, companies.