Investment management firm T. Rowe Price and International Finance Corporation (IFC) have launched the T. Rowe Price Emerging Markets Blue Economy Bond Strategy (T. Rowe Price Blue) aimed at catalyzing the corporate blue bond market.
Water scarcity and ocean health are escalating global threats. According to the United Nations (UN), 2.2 billion people still lack access to safe drinking water, and over 80% of wastewater is discharged untreated. Meanwhile, increasing degradation of ocean ecosystems has created an urgent need for solutions.
T. Rowe Price Blue will invest in corporate bonds issued by both financial institutions and real-sector companies in emerging markets that meet strict Blue Impact Investment Guidelines, developed jointly by T. Rowe Price and IFC. These investments will support projects including, but not limited to, marine ecosystem conservation, wastewater treatment, coastal climate adaptation, and clean water infrastructure.
“The debut of T. Rowe Price Blue marks a significant step in addressing the need for sustainable water management and ocean preservation,” said Eric Veiel Head of Global Investments and CIO, T. Rowe Price. “By aligning the strategy’s investment objectives with specific water-related United Nations Sustainable Development Goals, we are not only mobilizing essential capital to protect and sustain our world’s precious water resources, but we are also demonstrating our commitment to managing innovative and impactful investment strategies.”
In addition to capital from IFC and T. Rowe Price, T. Rowe Price Blue has secured initial commitments from investors including Xylem Inc., a global water solutions company and Builders Vision, a team of investors and philanthropists accelerating solutions across food & agriculture, energy and oceans. Altogether, funding thus far for the blue economy bond strategy totals more than USD$200 million.
“The launch of T. Rowe Price Blue is a pivotal step in building a stronger blue economy — one that safeguards water resources, drives investment, and creates quality jobs across emerging markets,” said Mohamed Gouled, Vice President, Industries, IFC. “The strategy will directly benefit from IFC’s Blue Finance Guidelines, which provide a clear framework for channeling capital into high-impact ocean and water projects. Together, they give investors both the investment products and roadmap to scale credible blue finance — transforming sustainable water management and ocean preservation into engines for resilience, employment, and long-term prosperity.”
T. Rowe Price’s Samy Muaddi, Head of Emerging Markets Fixed Income, and Matt Lawton, Head of Impact Fixed Income, serve as co-portfolio managers of T. Rowe Price Blue. Both bring deep expertise in emerging markets and sustainable investments.
