HSBC Australia Expands Green Loans Access
(09 October 2020 – Australia) HSBC Australia has opened up green and sustainability linked loans to a wider range of commercial banking clients.
The increased access to green term loans, revolving credit facilities and sustainability linked loans will allow a greater number of corporates from a broader range of sector verticals to tap to into the high demand pool of capital that is dedicated to funding the global shift to a low-carbon economy.
Green term loans and green revolving credit facilities are available for the financing or refinancing of new or existing eligible green projects, in whole or in part. Examples of green projects include the production or transmission of renewable energy, adoption of clean transportation, and sustainable waste management.
A record or US$465 billion volume of sustainable debt was issued globally in 2019, up 78 percent year-on-year. HSBC Group was recently named the World’s Best Bank of Sustainable Finance in the Euromoney Awards for Excellence 2020 for the second consecutive year.
More than US$200 billion worth of green bonds have been issued in 2020 year to date. This represents a 12 percent increase compared with the total through to the end of Q3 2019. Together, corporate, government, municipal and mortgage green bond issuance in 2020 trailed 2019’s volumes through August however this all changed in September when green bonds saw a record US$50 billion brought to market in that month alone. More than US$1 trillion in green bonds have been issued since the securities first emerged in 2007 according to research company BloombergNEF.
“Sustainable finance has been readily available to larger companies in Australia but more difficult for others to obtain. It is now fast becoming a key discussion point in our debt refinancing activity and we expect to see accelerated take-up as the world recovers from COVID-19. We had previously provided bespoke solutions to commercial banking clients seeking sustainable finance but have adapted our product range so that we can better respond to requests from this segment of our customer base” stated HSBC Australia Head of Commercial Banking, Steve Hughes.
“Companies increasingly want to differentiate themselves by highlighting their commitment to sustainability and our loans allow them to do so, while also funding activities that will mitigate the risks that climate change presents to their business models” commented HSBC Australia Head of Global Banking, Hamish Kelly.