DCM Article IX Credit Exposure Fund (IFC-47712)

Regions
  • World
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Aug 9, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
HSBC CSB Fund
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 1,000.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 14, 2025

Disclosed by Bank Oct 3, 2024

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the proposed project consists of an IFC investment in a Fund managed by HSBC Asset Management (“HSBC AM” or the “Fund Manager”).  The Fund will invest in publicly listed bonds issued by emerging markets corporates and financial institutions, targeting a portfolio of Sustainable Finance Disclosure Regulation (SFDR) Article 9 compliant investments.                                                    

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The proposed project consists of an IFC investment in a Fund managed by HSBC AM. The Fund is intended to be an Article 9 fund under the Sustainable Finance Disclosure Regulation (SFDR) and will invest in publicly listed bonds issued by emerging markets corporates and financial institutions, with the aim to positively contribute to sustainable development goals.

Eligible corporate bonds will include non-labeled bonds and labelled bonds such as green, social, sustainability, performance, transition, and sustainability-linked bonds. Eligible FI bonds will only include use of proceeds-labelled bonds such as green, social, and sustainability bonds. The project will exclude bonds supporting coal-related activities and issuers with sizable exposures to fossil fuels.

The Fund will assess risks to meet the “do no significant harm” criteria under SFDR and screen out issuers exposed to higher risk E&S activities, as contemplated by the IFC Performance Standards. However, the nature of the transactions does not allow the Fund Manager to have formal bilateral relationships with project sponsors of assets to be supported through bond issuances. Therefore, the Fund Manager will not have the ability to require any specific E&S performance improvements or be in a position to conduct assessment of E&S risks at the asset level. Considering the E&S risks of the sectors supported by this project, the E&S category is FI-1.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Under its Global Emerging Markets Corporate Sustainable Bond Strategy, HSBC AM targets to raise up to US$1 billion through different vehicles. IFC’s investment in this strategy, through the Fund, will be up to US$100 million. 

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

HSBC Asset Management (“HSBC AM”) is the brand name for the asset management business of HSBC Holdings plc (“HSBC Group”). HSBC Holdings plc, is a public limited company, listed on the London, Hong Kong, New York and Bermuda stock exchanges. HSBC AM has US$712 bn assets under management as of 31 March 2024, of which US$188 bn in emerging markets assets including US$64 bn in emerging markets fixed income.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

HSBC Global Asset Management (UK) Limited
Eric Zwickel / Daniel Rettig
Client Sustainability Director / Institutional Sales

Eric.s.zwickel@hsbc.com
HSBC Asset Management (UK) Limited 8 Canada Square, Canary Wharf London E14 5HQ
https://www.assetmanagement.hsbc.co.uk/en/institutional-investor

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works