T. Rowe Price launches blue bond EM strategy

T. Rowe Price has launched the Emerging Markets Blue Economy Bond Strategy, a strategy aimed at preserving water resources.

With initial funding of more than US $200 million, the strategy is a boost for the corporate blue bond market, T. Rowe Price say.

T. Rowe Price Blue will invest in corporate bonds in emerging markets that meet Blue Impact Investment Guidelines, developed jointly by T. Rowe Price and the International Financial Corporation. The strategy will invest in projects including marine ecosystem conservation, wastewater treatment, coastal climate adaptation, and clean water infrastructure.

The strategy is aligned with UN Sustainable Development Goals 6 and 14, which target clean water and healthy marine habitats, and is classified under Article 9 of the EU’s Sustainable Finance Disclosure Regulation. It will be managed by Samy Muaddi, head of emerging markets fixed income, and Matt Lawton, head of impact fixed income.

Eric Veiel, Head of Global Investments and CIO, T. Rowe Price, said, “The debut of T. Rowe Price Blue marks a significant step in addressing the need for sustainable water management and ocean preservation, By aligning the strategy’s investment objectives with specific water-related United Nations Sustainable Development Goals, we are not only mobilising essential capital to protect and sustain our world’s precious water resources, but we are also demonstrating our commitment to managing innovative and impactful investment strategies.”