The world’s fourth largest bank by total assets, HSBC Holdings, has finally entered the rapidly expanding global green bonds market.
Only days after announcing that it will create a portfolio worth $1 billion to invest in green bonds to support renewable energy and sustainability projects, HSBC Holdings floated is first green bonds issue.
HSBC France successfully raised €500 million ($531 million) offering the instruments at an annual coupon rate of 0.625% for a period of 5 years. The proceeds of the green bond issue will be used to finance renewable energy, energy efficiency, energy conservation, and climate change adaptation projects, among others.
HSBC is a member of several associations and bodies working in the climate finance sector, such as the ICMA Green Bond Principles Executive Committee, Green Growth Platform Financial Advisory Council, and the Climate Bonds Initiative. HSBC is already among the leading participants in the green bonds market. According to the Climate Bonds Initiative, HSBC is the 6th largest underwriter this year in terms of assets covered. The bank has underwritten over $1.5 billion worth of bonds during the first three quarters of this year.
More subsidiaries of the bank around the world can be expected to issue green bonds in the near future. Earlier this year, the bank’s Indian arm announced that it will soon launch green bonds in the country.
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