(Ecofin Agency) - The International Finance Corporation (IFC) announces the creation of a green bond fund targeting “real economy” issuers in emerging markets. Created in collaboration with HSBC Global Asset Management, the fund will also help increase those markets’ access to climate finance and promote green bonds’ markets.

Named Real Economy Green Investment Opportunity (REGIO) Fund, it will have a capital of between $500 million to $700 million raised from multilateral institutions and the private sector. It will have a lifetime period of 15 years, seven of which will be dedicated to investments.

REGIO FUND will help support profitable climate investments around the world via green bonds issued by companies operating in the industry, agribusiness, services and infrastructures sectors.

“The fund will provide new opportunities for an important class of borrowers in green bond markets. The capital raised by REGIO will make a vital contribution to the fight against climate change and further promote sustainability-oriented capital markets,” said Philippe Le Houérou (photo), IFC’s executive director.  

Since 2010, the IFC has issued 143 green bonds denominated in sixteen currencies. Thanks to those issuances, it raised $9 billion.

Gwladys Johnson Akinocho