“HSBC raises £386m fund for climate mitigation in developing countries” – edie – May 21, 2020

On May 21, 2020 edie reported that “HSBC Global Asset Management and IFC, a member of the World Bank Group, have each committed £61m ($75m) to the HSBC Real Economy Green Investment Opportunity GEM Bond Fund (REGIO), acting as anchor investors for the fund. Seven other private investors have joined the initiative, bringing the fund’s total to $474m at the third closing.

The two investors expect others to commit to the fund, which focuses on attracting investments in developing economies, later this year.

HSBC’s group chief executive Noel Quinn 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.’

REGIO will access both public and private capital to fund climate mitigation projects in markets where access to capital is limited, especially during the market turmoil caused by Covid-19.

The green bond will be supported by IFC, which is the largest global development institution focused on the private sector in emerging markets.”

You may read the article on the edie internet site.

“Study: ‘Social responsibility’ top driver of fixed income ESG integration” – Investment & Pensions Europe – May 18, 2020

On May 18, 2020 Investment & Pensions Europe reported on the Invesco Global Fixed Income Study 2020, that documents social responsibility as a primary driver of fixed income integration.

“Social responsibility is the most popular factor motivating fixed income investors to integrate environmental, social and governance (ESG) considerations, according to a survey by Invesco.

Investors interviewed for the asset manager’s third annual global fixed income study were given a range of motivating factors to choose from, with 75% picking social responsibility, 67% ‘stakeholder wishes’, and 60% saying they were motivated by a desire to align with beneficiary beliefs.

Half of investors that have incorporated ESG factors within their fixed income portfolios cited return enhancement as a key driver, with Invesco highlighting this figure as a reflection of a change in investor attitudes about ESG.

‘Across all regions, very few investors report that integrating ESG has hindered returns, and in the case of EMEA, a majority (52%) have said that integrating ESG has improved them,’ said Nick Tolchard, head of EMEA for fixed income at Invesco.”

According to Invesco, the third annual study is “based on in-depth interviews with 159 CIOs and asset owners that are together responsible for the fixed income components of portfolios totalling US$20 trillion in AUM.”

You may read the article on the Investment  & Pensions Europe internet site.

You can download the full study from the Invesco internet site.