HSBC Asset Management has announced the launch of the first track under its Global Infrastructure Transformation Lending Strategy, which aims to provide investors with opportunities to invest in infrastructure that will accelerate the move towards net-zero emissions. The strategy will focus on areas such as clean energy, energy efficiency and clean industry.
HSBC said the new strategy is ready to launch with a committed fund of more than $240 million for investors looking to go Net-Zero. According to information on the HSBC AM website, the lending strategy will be for infrastructure and corporate projects, targeting mid-market groups in countries with high credit scores in Europe, North America and the Asia-Pacific region.
The loan is expected to contribute to reducing greenhouse gas emissions and transitioning towards Net-Zero by 2050. The sectors targeted by the fund include renewable energy, minerals and metals needed for renewable energy generation, electricity storage, electricity distribution and transmission, as well as carbon capture and storage facilities.
The fund’s investment team will adopt a strategy of engaging with infrastructure debt investors on ESG and credit, according to the disclosure. This strategy will include engaging with the borrower team at least annually to understand and assess their sustainability commitments, as well as their progress towards ESG targets and their roadmap to net zero emissions.
Scott McClurg, Head of Private Credit at HSBC AM said:
"We believe that substantial and sustainable investment in infrastructure will play a key role in the journey to Net-Zero. Our global Infrastructure Transformation Lending strategy offers clients the opportunity to contribute to and benefit from the transition to a more sustainable global economy while aiming to deliver attractive returns."