Global investment manager T. Rowe Price and the International Finance Corporation (IFC), a member of the World Bank Group, have announced the launch of the T. Rowe Price Emerging Markets Blue Economy Bond Strategy (T. Rowe Price Blue). This new fund is designed to invest in companies supporting sustainable water management and ocean preservation projects.
The initiative aims to stimulate the blue bond market by attracting additional private capital, demonstrating a viable investment model for blue bonds in emerging markets. The strategy is classified as Article 9 under the EU’s Sustainable Finance Disclosure Regulation (SFDR) and launches with over $200 million in initial commitments. Contributors include IFC, T. Rowe Price, and investors such as water solutions company Xylem and impact platform Builders Vision.
Claudia Toussaint, Senior Vice President and Chief People and Sustainability Officer at Xylem, commented on the partnership: “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 strategy will focus on corporate bonds issued by financial institutions and real-sector companies in emerging markets, with investments adhering to “Blue Impact Investment Guidelines” developed by T. Rowe Price and IFC. It aligns with the United Nations Sustainable Development Goals (SDGs) 6 (Clean water and sanitation) and 14 (Life below water), supporting areas such as marine ecosystem conservation, wastewater treatment, 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 Chief Investment Officer at T. Rowe Price, stated: “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 mobilising 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 of 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 channelling 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.”
