WASHINGTON, Nov. 20,
2023 /PRNewswire/ -- IFC, a member of the World Bank
Group, and T. Rowe Price today
announced plans to create a pioneering global blue bond strategy to
increase access to finance for blue projects in emerging markets
and help improve market standards for the nascent blue bond
market.
The proposed T. Rowe Price Emerging Markets Blue Economy
Bond Strategy (T. Rowe Price
Blue) is expected to mobilize international capital
from eligible investors to support blue-labeled investments in
emerging markets globally through blue bonds issued by financial
institutions and real sector companies.
"The investor capital deployed into blue bonds through T.
Rowe Price Blue will make a vital
contribution to furthering a blue economy," said Makhtar Diop, IFC Managing Director. "This
first-of-its-kind strategy with a dedicated vehicle for blue
investment will also be critical in promoting sustainable capital
markets in emerging markets and developing economies."
Blue investments seek to provide competitive returns while
supporting the health, productivity, and resilience of the world's
oceans and water resources, which are vital for sustainable global
development, especially in the face of climate change, overfishing,
and pollution. Momentum is growing for blue finance, with interest
from both investors and issuers in blue bonds and loans that fund
ocean-friendly projects and safeguard clean water resources.
"We are proud to partner with IFC to further the blue economy,"
said Rob Sharps, CEO and
president of T. Rowe
Price. "We're gratified that our emerging markets
investment experience can be leveraged in such a meaningful,
innovative, and important way, providing opportunities for positive
investment returns while supporting sustainable capital markets and
preserving valuable water resources for generations to come."
The proposed T. Rowe Price Emerging Markets Blue Economy Bond
Strategy will draw on IFC's leadership in the blue bond market.
Since 2020, IFC has invested and mobilized more than US$1.4 billion through 12 blue bonds and loans
issued by private sector financial institutions and real sector
corporates across emerging markets and developing economies.
To bolster the supply of blue bonds issued by real sector
borrowers, T. Rowe Price Emerging Markets Blue Economy Bond
investment activities will be complemented by a Technical
Assistance Facility, or TAF, managed by IFC, designed to increase
the quality and quantity of blue bond issuance in emerging
markets.
By partnering on this innovative strategy, T. Rowe Price and IFC are sending a clear message
to the market on the importance of mobilizing capital needed to
make meaningful progress towards achieving the Sustainable
Development Goals. Specifically, UN SDG 6 "ensure availability and
sustainable management of water and sanitation" and SDG 14
"conserve and sustainably use the oceans, seas and marine
resources".
To ensure that the mobilized resources achieve the desired
impact objectives, IFC and T. Rowe
Price have jointly developed Blue Impact Investment
Guidelines that will be implemented specifically for this strategy.
These guidelines are aligned with IFC's Guidelines for Blue Finance
which were published in January 2022
to guide IFC's own investments in support of a Sustainable Blue
Economy.
About IFC
IFC — a member of the World Bank Group — is the largest global
development institution focused on the private sector in emerging
markets. We work in more than 100 countries, using our capital,
expertise, and influence to create markets and opportunities in
developing countries. In fiscal year 2023, IFC committed a record
$43.7 billion to private companies
and financial institutions in developing countries, leveraging the
power of the private sector to end extreme poverty and boost shared
prosperity as economies grapple with the impacts of global
compounding crises. For more information, visit
www.ifc.org
Stay Connected with IFC on social media
About T. Rowe
Price
Founded in 1937, T. Rowe Price (NASDAQ - GS: TROW) helps people
around the world achieve their long-term investment goals. As a
large global asset management company known for investment
excellence, retirement leadership, and independent proprietary
research, the firm is built on a culture of integrity that puts
client interests first. Investors rely on the award-winning firm
for its retirement expertise and active management approach of
equity, fixed income, alternatives, and multi-asset investment
capabilities. T. Rowe Price manages
$1.31 trillion in assets under
management as of October 31, 2023,
and serves millions of clients globally. News and other updates can
be found on Facebook,
Instagram, LinkedIn, X, YouTube,
and troweprice.com/newsroom.
This press release is being furnished for general
informational purposes only. For full terms and conditions please
visit www.troweprice.com/BlueEconomy
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SOURCE T. Rowe Price Associates, Inc.