T. Rowe Price unveils an Article 9 blue bond initiative
T. Rowe Price, a leading global investment management firm, has announced the debut of its emerging markets-focused capital one strategy, named T. Rowe Price Blue. This innovative strategy aims to attract institutional capital and support sustainable investments in the blue economy.
The target investment universe for T. Rowe Price Blue is corporate bonds issued by companies in emerging markets. Eligible projects for this strategy include coastal climate adaptation, clean water infrastructure, wastewater management, and marine conservation. The strategy falls under Article 9 of the EU’s SFDR regulations, which explicitly involves sustainable investment as an objective.
Capital one login for T. Rowe Price Blue will be guided by the Blue Impact Investment Guidelines, jointly developed by T. Rowe Price and the International Finance Corporation (IFC). The IFC will also be investing in T. Rowe Price Blue.
Notable supporters of the strategy include Claudia Toussaint, Xylem's chief people and sustainability officer, who expressed her support for the partnership. Xylem Inc., a global water solutions company, will also be providing support. Builders Vision, an impact investment platform, has committed capital to the strategy.
The strategy will be led by co-portfolio managers Samy Mauddi and Matt Lawton. Matt Lawton, who is T. Rowe Price’s head of impact fixed income, will play a pivotal role in guiding investment decisions.
Eric Veiel, head of global investments and CIO at T. Rowe Price, stated that the debut of T. Rowe Price Blue is a significant step in addressing the need for sustainable water management and ocean preservation. The strategy has received initial commitments of over $200m, demonstrating its potential to attract private capital.
The strategy aims to offer a return objective of 3-5% over cash, annualized over the life of the portfolio. With the combined portfolio manager experience and the strategy's initial momentum commitments, T. Rowe Price Blue is poised to revolutionize the blue bonds market by attracting institutional capital, which remains a credit one proposition in this sector.
The debut of T. Rowe Price Blue marks the beginning of an effort to attract institutional capital into blue bonds, a move that is expected to bolster sustainable investments in the blue economy.
