Standard Chartered has announced that it has issued its inaugural green bond, which will be used to finance renewable energy, green buildings and circular economy solutions.
The €1 billion green bond was raised as part of the bank’s fifth sustainable finance issuance, but was its first in a green-only format, which underscores its ‘commitment to be a repeat issuer of sustainable debt’, it said in a statement.
As the bank noted, investor demand for the bond was strong, with orders reaching more than €3.9 billion.
The green bond will focus on sustainability projects in Asia, Africa and the Middle East, including financing climate resilient infrastructure, energy efficiency, sustainable water and natural resource solutions, along with circular economy projects in line with its Sustainability Bond Framework.
‘An important milestone’
“Our first Sustainable Finance issuance in a green-only format is an important milestone and demonstrates Standard Chartered’s unique ability to raise capital in the world’s largest financial centres and deploy it across borders, into those markets where the need for sustainable finance is most acute,”commented Diego De Giorgi, group chief financial officer, Standard Chartered.
“As a global bank that sits at the centre of capital, trade and investment flows, across both developed and developing economies, this issuance highlights how we’re providing financial solutions to support long-term growth across our markets.”
The issuance draws on Standard Chartered’s existing sustainable finance asset pool, which includes over $17.4 billion in green assets, More than 70% of these assets are located in Asia, Africa and the Middle East, overing some 355 projects across ten thematic areas.
Reducing emissions
“In emerging markets, every dollar of financing can have a disproportionate impact in terms of reducing carbon emissions,” commented Marisa Drew, chief sustainability officer, Standard Chartered.
“Our financing of renewable energy projects in Indonesia will have a 10 times greater impact on CO2 avoided than a similar sized project in France due to the displacement of power on more carbon intensive grids – another reason why an issuance like this makes a significant contribution to global sustainable growth and development.”
Examples of recent projects within Standard Chartered’s green asset portfolio include a flood-resilience project in Ghana, electric bus deployment in India, and support for a Türkiye’s second-largest solar power project. Read more here.
