It was yet another impressive year for HSBC in sustainable finance. At a global level the bank is committed to net-zero on carbon emissions. At a regional level it has a team of 39 staff, led by its head of sustainability, Europe and the Middle East, Sabrin Rahman. They engage with clients on ESG, sustainable finance and transition strategies.
Each year HSBC proves itself to be a leader in sustainability. In October 2020 it set a timeline to achieve net-zero in its entire financed portfolio by the end of the decade. Three months later it launched its sustainable and transition finance team in the Middle East, co-led by the regional heads of global banking and commercial banking. It set up a climate risk oversight forum, chaired by its Middle East head of risk, to oversee climate and transition risk, and surveyed hundreds of firms in Egypt, Qatar and the UAE to understand their climate adaptability level.
The bank as ever played a key role in green lending and financing across the region. Egypt’s finance ministry raised $750 million via the first-ever green print by a MENA sovereign, with HSBC named joint green structuring adviser and lead manager on the deal. It was also on hand in June 2020 to help the Islamic Development Bank complete its debut sustainability sukuk, a $1.5 billion issue to combat the impact of Covid. In October HSBC was global coordinator on Etihad Airways’ $600 million transition sukuk, the first of its kind in the world.
It was also busy on the lending side, helping Emirates NBD to finalize a $1.75 billion sustainability-linked loan in March 2021. In the same month it worked with Egypt’s Reefy Microfinance, a firm that supports female-owned startups and small companies, to complete a $9.6 million revolving credit facility.
