Robeco Launches First High Income Green Bond Strategy in Credit Market

Robeco has introduced its High Income Green Bonds strategy, marking the company's first foray into green bond investments within the credit space. This Article 9 strategy, launched on 4 September 2024, reflects growing investor demand for sustainable finance options.

Responding to Investor Demand for Green Bonds

The strategy aims to capitalize on the increasing interest in green bonds, which represented over 60% of ESG bond sales in 2023. Green bonds are financial instruments that support environmental projects, aiding companies in their transition to greener practices. Robeco's new strategy takes a global, benchmark-agnostic approach, focusing on green corporate bonds across various credit sectors.

A Blend of Sustainability and Credit Expertise

Joop Kohler, Head of Credits at Robeco, emphasized that the strategy combines Robeco’s sustainability expertise with the strength of its credit team. By following a five-step green bond framework, the company ensures that each bond meets strict criteria before inclusion.

Robeco’s High Income Green Bonds strategy is our first strategy focusing purely on green bonds from corporate issuers. It successfully combines the depth of our sustainability expertise with the long-standing track record and capabilities of our credit team. With the growing interest in transition investing, our High Income Green Bonds strategy meets the dual objective of sourcing attractive income for our clients, whilst providing a core tool for investors to achieve their impact goals. This could mean aligning with regulatory-driven investment objectives or contributing to a more meaningful impact through targeted investments that support sustainable transitions.

Joop Kohler, Head of Credits for Robeco