HSBC pockets USD 1bn from sustainable bonds issuance

Author: 401(K) 2012 on Flickr, CC BY-SA 2.0

November 24 (Renewables Now) - UK banking giant HSBC Holdings plc (LON:HSBA) has raised USD 1 billion (EUR 844m) from issuing a sustainable bond to support social, economic and environmental initiatives, including small-scale renewables.

Touted as the world's first corporate sustainable development bond, the issue was based on the United Nations Sustainable Development Goals (UNSDGs) and was three times oversubscribed, HSBC said in a press release on Thursday. The bond matures in 2023. It attracted “strong appetite” from investors in North America, which took 80% of the final allocations.

“Investors want more socially and environmentally responsible investment opportunities, and this bond helps to meet that demand,” said HSBC’s CEO Stuart Gulliver.

The bank intends to allocate the funds from the placement for projects that might include hospitals, schools, small-scale renewable power plants and public rail systems. Its goal is to create sustainable cities, help communities adapt to the effects of climate change and lift the share of renewables in the global power generation mix, among others.

According to HSBC, 68% of investors worldwide are planning to boost their spending on low-carbon initiatives. Earlier this month, the bank said it will provide USD 100 billion in sustainable financing and investment by 2025.

(USD 1.0 = EUR 0.844)

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Veselina Petrova is one of SeeNews Renewables most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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