BlueOrchard invests in IFC’s Covid-19 social bond issuance
31 March 2020 – The BlueOrchard UCITS Emerging Markets SDG Impact Bond Fund (IBF) has invested into a social bond from the International Finance Corporation (IFC), which is part of a collaborative response to the Covid-19 pandemic. The bond will support affected developing countries, with its main goal to maintain jobs and reduce the economic impact of the pandemic.
The issuance of this bond responds to the urgent need for health and socio-economic assistance in the current exceptional circumstances surrounding the pandemic. It comes following announcements from the World Bank Group on 3 and 17 March 2020, where it pledged to make available up to USD 14 billion to help sustain economies, protect jobs and strengthen public health preparedness.
IFC will play an important role in the deploying the funds pledged by the World Bank. This issuance is part of the IFC’s social bond programme, which aligns with the social bond principles published by the International Capital Market Association (IMCA). The IFC is a pioneer in social bond issuances, and is the first to offer a coordinated and global response to the pandemic.
This investment aligns closely with IBF’s aim to provide decisive funding to economically vulnerable communities in emerging and frontier markets. This fits closely with BlueOrchard’s core mission of expanding access to sustainable finance to create a pathway to better lives for those who need it most, while aiming to develop capital markets and attract investors at scale.
This bond investment opportunity for IBF has been selected based on BlueOrchard’s proprietary portfolio management and impact management tools and teams. It increases the portfolio’s diversification as well its impact and SDG contribution.
Philipp Müller, Chief Executive Officer, said: “The Covid-19 pandemic is affecting the lives of almost everyone on the planet, and it requires a coordinated response in order to help minimise the impact to some of the most vulnerable in society. As impact investors, we have a role to play in channelling sources of capital into investments that have the potential to contribute to today’s most difficult societal challenges. This social bond issuance is representative of the way in which the public and private sectors can come together to find solutions to the problems faced by wider society.”
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About BlueOrchard Finance Ltd
BlueOrchard is a leading global impact investment manager and a member of the Schroders group. The firm is dedicated to fostering inclusive and climate-smart growth in emerging and frontier markets, while providing attractive returns for investors. BlueOrchard was founded in 2001, by initiative of the UN, as the world’s first commercial manager of microfinance debt investments. The firm has built a distinct track record in offering premium impact investment solutions, including credit, private equity, and sustainable infrastructure. Being an expert in innovative blended finance mandates, the firm is a trusted partner of leading global development finance institutions. BlueOrchard has invested to date more than USD 6bn for sophisticated global private and public clients, enabling tangible social and environmental impact. For additional information, please visit: www.blueorchard.com.
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