Record’s EMSF strategy strengthens role in local currency impact investing

Record-plc

Record’s Emerging Market Sustainable Finance strategy continues to mature as a distinctive model for channeling private capital into impactful development across frontier and emerging markets. Now in its fourth year, the strategy has further embedded its approach to addressing the currency-related risks that often obstruct investment in lower-income economies.

At its core, EMSF targets a long-standing challenge in development finance: the reliance on hard currency lending in markets where currency volatility can destabilise borrowers and hinder progress. The strategy offers a solution by absorbing foreign exchange risk through bespoke hedging structures and local currency investment mechanisms. This allows development finance institutions (DFIs) and multilateral development banks (MDBs) to extend credit in local currencies, reducing financial stress for borrowers and enhancing economic resilience.

During the 12 months to March 2025, EMSF’s activity spanned 35 currencies and contributed to transactions in 146 countries where issuers operate. The platform facilitated $6.7 billion in emerging market currency trades, including $215 million in hedged local currency loans for DFIs. Among the peer-to-peer transactions executed were new deals in Azerbaijani manat, Jamaican dollar, Brazilian reais and Kyrgyzstani som.

Record plc (LON:REC) develops bespoke, high-quality, sophisticated solutions for institutional investors, a unique offering stemming from Record’s knowledge and expertise gained from its core currency hedging markets.

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