Amundi has raised $436m (£350m) from institutional investors such as the International Finance Corporation (IFC) for a new fund which provides private investment to emerging market sustainable bonds.
The Sustainable Emerging Economy Development Debt fund – known as SEED – is a sub-fund of Amundi Planet II. It was launched in 2021 on the sidelines of COP26 in Glasgow, with funding from institutional investors such as IFC, Alecta, Cassa Depositi e Prestiti, and APK-Pensionskasse.
The fund aims to expand the availability of and demand for underdeveloped parts of the sustainable bond market in emerging market economies.
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“This fund underscores the growing interest in sustainable bonds as well as their resilience in the face of global economic uncertainty,” said Tomasz Telma, director and global head of IFC’s financial institutions group.
“Innovative financing solutions such as the SEED fund enable greater mobilization of private sector capital to emerging markets, aiming to address a massive financing gap and channelling resources to meet global challenges.”
IFC is a member of the World Bank Group, and has a remit to offer investment, advisory, and asset-management services which encourage private-sector development in less developed countries.
“We are proud to play a leading role in responsible finance together with the IFC, tackling key challenges such as inequality and climate change,” said Jean-Jacques Barbéris, head of the institutional and corporate clients division and ESG at Amundi.
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“This fund is a great example of the benefits of public-private partnerships in creating new markets trying to help addressing financing gaps in regions where funding is most needed.”
Alecta’s head of fixed income Tony Persson said that the investment creates an opportunity to support more sustainable development by encouraging the issuance of green, social and sustainability-linked bonds in emerging markets.
“This is an example of Alecta’s ambition to combine attractive returns and positive impact for our beneficiaries,” Persson added.
The SEED fund is classified as Article 8 under the sustainable finance disclosures regulation.
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