Global investment manager T. Rowe Price and World Bank Group member the International Finance Corporation (IFC) announced the launch of the T. Rowe Price Emerging Markets Blue Economy Bond Strategy (T. Rowe Price Blue), a new fund aimed at investing in companies supporting projects targeting sustainable water management and ocean preservation.
The strategy also aims to help catalyze the blue bond market, crowding in additional private capital at scale by demonstrating a viable investment model for blue bonds in emerging markets.
The new strategy, classified as Article 9 under the EU’s SFDR regulation, is being launched with initial commitments of more than $200 million, including capital from IFC and T. Rowe Price, as well as from investors including water solutions company Xylem, and impact platform Builders Vision.
Claudia Toussaint, Senior Vice President, Chief People and Sustainability Officer at Xylem, said:
“The Blue Bond partnership with T. Rowe Price is a strategic step forward in building a more water-secure world. It aligns with our purpose by empowering customers and communities to reduce water demand and protect vital ecosystems. By investing in solutions that deliver both environmental and economic returns, we’re helping shape a future where sustainability drives growth.”
The new strategy will invest in corporate bonds issued by both financial institutions and real-sector companies in emerging markets, with investments required to meet “Blue Impact Investment Guidelines” developed by T. Rowe Price and IFC.
The strategy is aligned with UN SDGs 6 (Clean water and sanitation) and 14 (Life below water), and will support areas ranging from marine ecosystem conservation and wastewater treatment to coastal climate adaptation, and clean water infrastructure.
Portfolio managers for T. Rowe Price Blue include Samy Muaddi, Head of Emerging Markets Fixed Income, and Matt Lawton, Head of Impact Fixed Income, at T. Rowe Price.
Eric Veiel Head of Global Investments and CIO, at T. Rowe Price said:
“The debut of T. Rowe Price Blue marks a significant step in addressing the need for sustainable water management and ocean preservation. 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.”
Mohamed Gouled, Vice President, Industries at IFC, added:
“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. 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.”
