HSBC has secured its position as both the Middle East’s best Islamic bank for ESG through a series of landmark transactions and initiatives demonstrating the bank’s commitment to sustainable Islamic finance.
In Saudi Arabia, HSBC orchestrated several groundbreaking deals in 2024, including Saudi Investment Bank’s debut international offering with a $750 million perpetual NC5.5-year AT1 RegS sustainable sukuk. The bank also led Cenomi Centers’ SR5.25 billion ($1.4 billion) multi-tranche sustainability-linked facilities as sole financial coordinator and lead sustainability coordinator, marking the first private sector syndicated sustainability-linked financing in Saudi market history.
Regionally, HSBC has demonstrated exceptional breadth across sustainable Islamic finance, arranging Al Rajhi Bank’s facility, which stands as not just the largest Islamic sustainable financing to a financial institution globally but overall the largest Islamic financial institution financing. The bank also structured one of the most widely participated sustainability-linked AAOIFI transactions for Ahli United Bank and pioneered a syndicated sustainability-linked transaction including a murabaha tranche for Turkey’s fashion retail industry through DeFacto.
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HSBC’s commitment extends beyond transactions to market development through two significant initiatives. Partnering with the Global Ethical Finance Initiative, the Islamic Sustainable Finance Initiative builds capacity within Islamic finance through expert roundtables, thought leadership reports and custom Islamic sustainable finance courses for practitioners. Meanwhile, the Global Islamic Finance Programme, in collaboration with Emirates Nature WWF, channels Islamic assets into nature-based solutions in the global south through an indigenous blended finance approach to climate-resilient investments.
The bank’s regional transaction portfolio further includes ADES’s $3 billion facility – one of the largest syndicated corporate facilities in Saudi Arabia’s history – alongside AUB’s $800 million issuance, demonstrating HSBC’s ability to arrange complex, large-scale sustainable Islamic financing structures.
HSBC’s leadership in Islamic ESG banking reflects its strategic focus on blending Islamic finance principles with sustainability objectives, creating tailored solutions that address both environmental concerns and Shariah compliance. Through these efforts, HSBC continues to strengthen its position as the region’s premier Islamic bank for ESG.
