OREANDA-NEWS. November 28, 2017. HSBC has launched a new type of sustainable bond based on the United Nations Sustainable Development Goals (SDGs). This is the first time that a private company has issued a bond of this type and reflects the HSBC Group’s commitment to financing projects that benefit communities and the environment.

The USD1 billion raised from the bond will be used to support projects that offer broad social, economic and environmental benefits in line with selected SDG targets. These could include hospitals, schools, small-scale renewable power plants and public rail systems.

Investors want more socially and environmentally responsible investment opportunities

Stuart Gulliver, HSBC Group Chief Executive, said: “The launch recognises our responsibility to help finance global sustainable development. Investors want more socially and environmentally responsible investment opportunities, and this bond helps to meet that demand. It also helps build a deeper and more liquid market to attract other issuers. This is just one mark of HSBC’s commitment to help economies and societies advance towards a sustainable future.”

Patricia Espinosa, Executive Secretary of UN Climate Change, said: “A dramatic expansion in creative financing is going to be crucial for catalysing the transition to a low-carbon, sustainable world. It is happening, but needs to happen with greater urgency, speed and scale. So congratulations to HSBC for this innovation and its explicit support for the SDGs and the Paris Climate Change Agreement – we look forward to many more financial institutions following suit.”

HSBC has published a new framework aligned to the SDGs setting out how the USD1 billion proceeds will be used and managed. In particular, the proceeds will be used to support projects contributing towards specific goals, including:

  • Improving access to education, essential healthcare, fresh water and sanitation

  • Increasing the share of renewables in the global energy mix

  • Building sustainable cities and transport systems

  • Helping communities adapt to the effects of climate change