BNP Paribas Launches Sustainable Asian Cities Bond

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BNP Paribas Launches Sustainable Asian Cities Bond


BNP Paribas Asset Management (BNPP AM), the asset management arm of BNP Paribas [BNP:FP], has launched the Sustainable Asian Cities Bond, a new fixed income strategy aiming to support sustainable urbanization in Asian cities, as reported by ESG Today on May 9. The fund is domiciled in Luxembourg and will be managed by BNPP AM’s Head of Emerging Market Fixed Income, Jean-Charles Sambor. According to Sambor, the launch of the Sustainable Asian Cities Bond is driven by client demand, as well as BNPP AM’s belief in the long-term need for capital to assist Asia’s sustainable urban development.

Notably, the new bond will be the first Asia-focused fixed income product classified as an Article 9 product under the European Union’s Sustainable Finance Disclosure Regulation (SFDR). According to the SFDR, Article 9 products are financial products with sustainable investment as its objective. Meeting this objective, the Sustainable Asian Cities Bond’s portfolio will invest in sustainability-labeled bonds which finance projects and activities aligned with sustainable urban development, such as clean transport, renewable energy, and healthcare infrastructure. In addition, the fund will invest in bonds from ESG-screened issuers generating at least 20% of their revenue from activities that directly contribute to technology products or enablers for smart grids in Asian cities.