HSBC rolls out Enterprise Financing Scheme-Green to corporate customers
Launched by Enterprise Singapore (“ESG”)1 as part of its Enterprise Sustainability Programme, HSBC is one of four qualifying banks in Singapore to participate in the EFS-Green scheme.
Regina Lee, Head of Commercial Banking, HSBC Singapore: “The EFS-Green scheme is a direct, measurable scheme which will channel capital towards eligible businesses that are working towards the shift to a lower carbon economy. We are proud to bring HSBC’s sustainable financing propositions to the pilot in order to encourage innovation and accelerate this transition.”
The EFS-Green scheme provides up to 70% risk share to catalyse lending for emerging Green Growth Sectors aligned to the Singapore Green Plan 2030 and which develop technologies and solutions contributing to the reduction of waste, resource use or greenhouse gas emissions.
HSBC corporate clients will be eligible to participate subject to ESG’s Green Qualifying Criteria. The scheme draws on HSBC’s expertise in providing sustainable financing and investments, where the Bank provides green loans with defined use of proceeds requirements consistent with market established principles. Under the EFS-Green scheme, HSBC will extend financing comprising six financing parameters; Green Development Capital, Fixed Assets, Trade Financing, Project Loans, Mergers and Acquisitions, and Venture Debt Loans.
Ms Lee continued: “The firms of the future will be those with the foresight to mitigate and adapt now in order to thrive. Singapore businesses are in an enviable position; the Singapore Green Plan 2030 sets out a firm roadmap towards sustainable development.
Elevating sustainable finance in Singapore
HSBC has committed to align its financed emissions – the carbon emissions of its portfolio of customers – to the Paris Agreement goal to achieve net zero by 2050 or sooner. As part of this, HSBC will provide up to USD1 trillion in sustainable financing and investment by 2030 to support clients in their own transition to more sustainable ways of doing business.2
In Singapore, HSBC has been at the forefront of driving the sustainable finance agenda, helping to build a thriving, resilient future for societies and businesses. The Bank has executed market-leading transactions, launched innovative sustainable finance solutions, and is driving industry groups to embed sustainability into banking practices and support the communities around us.
HSBC’s key initiatives and activities across Singapore include:
- First international bank in Singapore to pilot the Monetary Authority of Singapore’s Green Trade Finance Framework.3
- Leading Singapore’s sustainability efforts by Chairing the MAS Green Finance Industry Taskforce (GFIT).
- HSBC launched SME Green Loans and Corporate Green Deposits in Singapore4
- Executed HSBC’s first sustainability-linked derivative product in Singapore to offer direct ESG-linked incentives.5
Media enquiries to:
Lucy Stewart | lucy.stewart@hsbc.com.sg | +65 9658 3405
Notes:
1 https://www.enterprisesg.gov.sg/media-centre/media-releases
2 https://www.hsbc.com/who-we-are/our-climate-strategy/hsbc-climate-plan-explained
3 https://www.about.hsbc.com.sg/news-and-media/hsbc-singapore-pilots-gtf-framework
4 https://www.about.hsbc.com.sg/news-and-media/hsbc-launches-green-deposit-account-for-corporate-clients-in-sg
5 HSBC and ALOG partner on sustainability-linked interest rate swap
Notes to editor
The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group. HSBC serves customers worldwide from offices in 64 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of $2,976bn at 30 June 2021, HSBC is one of the world’s largest banking and financial services organisations.