The strategy seeks to capture up to US $ 500 million Wall Street, and part of the initial capital came from the company of Lukas Walton, heir of Walmart.
T. Rowe Priceone of the most important firms of Wall Streetsaid the Financial support of the Lukas Walton Impact Platformheir of Walmartfor the launch of a New Blue Bonds “backgroundtitles corporate focused on protection Water resources and sailors in emerging markets.
The strategy seeks to capture up to US $ 500 million, as confirmed Samy MuaddiDirector of Fixed Income of Emerging Markets of the Manager based in Baltimore.
Wall Street is associated with Walmart heir
Among the first investors are Builders Vision, Walton’s platformand the Xylem Water Technology Company, which together already contributed US $ 200 million, according to information sent by T. Rowe to Bloomberg.
The fund is developed in alliance with the International Financial Corporation (IFC), the private arm of the World Bank Group. According to Muaddi, the initiative could offer Returns of up to 400 basic points above the American treasure bondswith the aim of attracting private capital towards the so -called “blue finances.”
Blue bonds, introduced by the World Bank in 2018, channel resources towards projects that fight water pollution, overfishing and the impact of climate change on rivers and oceans. These challenges especially affect developing countries, which face difficulties to mobilize the required financing.
Wall Street
“The launch of this strategy is a fundamental step to consolidate a stronger blue economy, capable of protecting water resources, generating quality employment and promoting investment in emerging markets,” he said Mohamed GaredVice President of IFC Industries.
Blue bonds become prominence
T. Rowe and IFC had presented their blue economy bond strategy for emerging markets in November 2023. Currently, the blue bond market reaches a Estimated value of US $20,000 millionwith just 15% corresponding to emitters from developing countries.
According to Matt Lawton, fixed impact income director at T. Rowe, They could be issued up to US $ 2,500 million In new corporate bonds of emerging markets in the next 12 to 18 months.
A recent example is the issuance of You knowthe sanitation company of São Paulowhich placed a five -year blue bonus for US $ 500 million, organized by Goldman Sachs, Itaú Unibanco and JP Morganwith an initial yield of 5.7%.
Although attracting investors to this type of products remains a challenge, Muaddi stressed that “water was a unifying issue” between customers, and trusts that The sector will maintain sustained growth.
Source: Ambito
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