Asset manager Robeco has launched a High Income Green Bond strategy, making it one of the first to bring an Article 9 High Income Green Bond strategy to the credit market.

The strategy is managed with a benchmark-agnostic, global approach across all credit sectors within green bond investments, Robeco stated.

It is designed to respond to growing investor interest in the wide range of green bonds.

According to Robeco, green bonds were the driving force behind the overall growth of the global ESG-labelled bond market in 2023, representing a share of more than 60 per cent of ESG bond sales.

Proceeds from green bond issues are earmarked for environmental projects that promote greener practices, supporting transitioning companies in their decarbonisation efforts as the investment landscape evolves.

Robeco said it determines whether a bond is eligible for their investment universe by applying specific steps from its five-step green bond framework.

All green corporate bonds must successfully pass these steps, with the portfolio manager then deciding whether to include the eligible green bond based on their investment view and in line with the portfolio's credit investment process.

“Robeco’s High Income Green Bonds strategy is our first strategy focusing purely on green bonds from corporate issuers,” commented Robeco head of credits, Joop Kohler.

“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.”

---