Corporate Sustainable Bonds in Emerging Markets

December 13, 2020

During the past five years, the market for green bonds in emerging economies has grown rapidly. Yet the majority of green bonds in emerging markets are issued by financial institutions, with far fewer non-financial firms, such as utilities, agribusiness providers, and manufacturers—or real-sector companies—entering the market. Supported by IFC and HSBC Global Asset Management, this research report focuses on identifying new market opportunities for green and sustainable bonds at the country and issuer levels. By doing so, the partners hope to stimulate the supply side of green and sustainable bonds, and sustainability-oriented capital markets, in targeted emerging market countries.

The partnership between HSBC and IFC and its diversified fund, called the Real Economy Green Investment Opportunity Fund (REGIO), helps to cultivate viable markets for investment in climate-friendly projects and mobilizes capital to make meaningful progress toward achieving the Sustainable Development Goals. REGIO is the first global green bond fund targeting real sector companies in emerging markets.