UK-based multinational bank Standard Chartered announced that it has issued its first-ever Social bond, raising €1 billion (USD$1.1 billion) to support sustainable development in low-income countries across emerging markets where the bank is active.
Proceeds from the bond issuance will be used to provide loans and financing to small and medium sized enterprises (SMEs), and finance access to services like healthcare and education.
The bond will help facilitate investment into affordable basic infrastructure and food security, in line with the bank’s commitment to sustainability, Standard Chartered said. The proceeds raised from this inaugural bond will be referenced by Standard Chartered’s Sustainable Finance asset pool, which includes $5.5 billion in social assets for projects with positive benefits, 99% of which are located in Asia, Africa and the Middle East, where the demand for finance is acute.
Marisa Drew, Chief Sustainability Officer at Standard Chartered, said:
“This first Social bond issuance underscores our commitment to people, communities and businesses, and provides a unique opportunity to mobilise capital at scale towards inclusive growth and development across our markets.”
According to Standard Chartered, the issuance comes as investments of over $4 trillion are needed annually to help build resilience across businesses and communities, and facilitate enduring growth, globally.
Diego De Giorgi, Group Chief Financial Officer at Standard Chartered, said:
“Our first social issuance is an important milestone for the bank and demonstrates Standard Chartered’s unique ability to raise capital in the world’s largest financial centers and deploy it across borders, into those markets where the need for sustainable finance is most acute. As a bank that sits at the center of capital, trade and investment flows, across both developed and developing economies, this issuance highlights how the bank is providing financial solutions to support the enduring growth of our markets.”
