IFC, HSBC set up 1st global real economy green bond fund

The International Finance Corporation (IFC) and HSBC Global Asset Management have established the first global green bond fund that focuses on “real economy” issuers in emerging markets.

IFC, which is a member of the World Bank Group, said in a statement today that the so-called Real Economy Green Investment Opportunity (REGIO) Fund will catalyse at least USD 500 million (EUR 445m) to USD 700 million in multilateral and private sector capital in support of climate-smart investments in developing countries. IFC itself will make a USD-100-million anchor investment and HSBC will contribute up to USD 75 million.

REGIO, with a total life of up to 15 years, will increase access to climate finance for non-financial borrowers, which, IFC says, represent an untapped opportunity in the green bond markets around the world.

The announcement also mentions that REGIO’s investment activities will be complemented by a Technical Assistance Facility (TAF) managed by IFC.

(USD 1.0 = EUR 0.889)

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