French fund manager BNP Paribas Asset Management (BNPP AM) has debuted its first Asia-focused fixed income investment vehicle.
The BNP Paribas Sustainable Asia Cities Bond fund is domiciled in Luxembourg and is designed to offer investors exposure to the growth opportunities resulting from urbanisation in Asia.
According to the firm, the fund is also the first Asia-focused bond fund to be classified as an article 9 fund under the EU’s Sustainable Finance Disclosure Regime.
“We believe that the need for infrastructure development capital in Asia to make cities more sustainable is secular and long-term, taking place over several decades, rather than being a passing fad,” said Jean-Charles Sambor, head of emerging market fixed income at BNPP AM and portfolio manager of the BNP Paribas Sustainable Asian Cities fund.
The region already accounts for more than half of the world’s population, and will likely experience increased urbanisation in the decades to come,” added Xuan Sheng Ou Yong, green bonds and ESG analyst at BNPP AM.
“Coupled with expected higher frequency and intensity of physical climate change impacts, we see great urgency for Asian cities to undergo sustainable change.”
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