UK-based multinational bank Standard Chartered announced that it has issued its first-ever green bond, raising €1 billion to finance projects including renewable energy and green buildings in Asia, Africa and the Middle East.
The new offering marks Standard Chartered’s fifth sustainable finance issuance, and its first in a green-only format. The bank issued its inaugural social bond last year, raising €1 billion to support sustainable development in low-income countries across emerging markets.
Diego De Giorgi, Group Chief Financial Officer, Standard Chartered said:
“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.”
According to Standard Chartered, proceeds from the new green bond offering will be used to help finance projects including renewable energy, green buildings and circular economy solutions, as well as to finance climate resilient infrastructure, energy efficiency, sustainable water and natural resource solutions, and projects which deliver against circular economy ambitions.
The bank noted that its Sustainable Finance asset pool includes $17.4 billion in green assets, encompassing more than 350 green projects in thematic areas that help to lower carbon emissions, enhance climate adaptation and resilience, develop and manufacture eco-efficient products, reduce waste and wastewater, and enhance the sustainability of natural resources. More than 70% of the bank’s Sustainable Finance asset pool is located in Asia, Africa and the Middle East.
Marisa Drew, Chief Sustainability Officer, Standard Chartered said:
“In emerging markets, every dollar of financing can have a disproportionate impact in terms of reducing carbon emissions. 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.”
Demand for the new offering was strong, with the issuance nearly 4x oversubscribed, drawing an order book of more than €3.9 billion.
