T. Rowe Price, the global asset management firm, has partnered with the International Finance Corporation (IFC), a member of the World Bank Group, to launch a pioneering investment fund focused on the blue economy. Named the T. Rowe Price Emerging Markets Blue Economy Bond Strategy, or T. Rowe Price Blue, the fund will invest in projects across emerging markets that support sustainable water management and the protection of ocean ecosystems.

The launch marks a significant effort to mainstream blue finance by demonstrating that such investments can offer both environmental impact and financial returns. With initial capital commitments exceeding $200 million, the strategy is positioned to catalyse further private sector involvement in a sector that has remained underfunded despite its growing urgency.

Aligning Investment with the United Nations' Water Goals

The strategy has been classified under Article 9 of the European Union’s Sustainable Finance Disclosure Regulation (SFDR), meaning it is designated for products with a clear sustainable investment objective. It is aligned with two of the United Nations Sustainable Development Goals: SDG 6, which promotes clean water and sanitation, and SDG 14, focused on conserving marine life and oceans.

Areas of investment will include coastal infrastructure, wastewater treatment, marine ecosystem conservation, climate adaptation projects near coastlines, and access to clean drinking water. By directly linking the investment focus to water-related development goals, T. Rowe Price Blue aims to fill a vital financing gap while delivering long-term value to investors.

A Coalition of Investors with Deep Sector Commitment

Alongside T. Rowe Price and IFC, the fund’s initial backers include major players such as Xylem, a water technology company, and Builders Vision, an impact-driven investment platform. Their participation signals growing interest among mission-aligned institutions to support finance models that advance water security and ecosystem resilience.

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Xylem’s Chief Sustainability Officer, Claudia Toussaint, described the partnership as an opportunity to amplify the company’s impact. She noted that investing in blue bonds complements Xylem’s commitment to building water-secure communities while unlocking environmental and economic value.

Focus on Real-Sector and Financial Bonds in Emerging Markets

Unlike many green or impact funds that concentrate on developed economies, this strategy takes a bold approach by focusing specifically on emerging markets. The portfolio will include corporate bonds issued by both real-sector companies and financial institutions operating in water-related sectors. All investments must adhere to the Blue Impact Investment Guidelines, a new framework developed jointly by T. Rowe Price and IFC to ensure the environmental integrity and measurable impact of projects.

T. Rowe Price’s Samy Muaddi and Matt Lawton will manage the fund. Muaddi leads the firm’s Emerging Markets Fixed Income division, while Lawton heads the Impact Fixed Income practice. Their combined expertise reflects a dual commitment to market performance and sustainability outcomes.

Demonstrating a Scalable Path for Blue Finance

According to Mohamed Gouled, Vice President for Industries at IFC, the fund represents a critical step toward scaling the blue economy. He emphasised that the partnership brings together both the investment vehicles and the technical frameworks required to make blue finance more credible, investable, and impactful.

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Gouled pointed to IFC’s Blue Finance Guidelines as essential tools for aligning capital with high-quality water and ocean initiatives. These standards offer investors a roadmap to identify, evaluate, and track the results of projects that aim to safeguard water resources and enhance coastal livelihoods.

A Strategic Moment for Water-Linked Capital Markets

Eric Veiel, Chief Investment Officer and Head of Global Investments at T. Rowe Price, framed the fund as both a call to action and a market signal. He stated that aligning investments with water-related SDGs is not only a response to environmental necessity, but also a demonstration of how financial institutions can lead the way in designing forward-looking and impactful capital strategies.

With the debut of T. Rowe Price Blue, a new chapter in sustainable investing has begun. The fund is not just supporting water infrastructure or ocean health it is building a broader case for integrating blue finance into global capital markets and advancing resilience across regions that are most vulnerable to water insecurity and climate change.

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