HSBC was the leading bookrunner in the Green/ Social/ Sustainable (GSS) league table in Asia with nearly USD4 billion worth of deals during the awards period of 1 April 2019 to 31 March 2020. The Bank acted as Green Structuring Advisor on over 40% of the bond deals where it was a bookrunner.1
Over the past year, HSBC delivered a range of sustainable finance transactions in Asia-Pacific. It was the only bank to have supported all inaugural Asian Green/ Sustainability Bond issuance in the sovereigns, supranationals and agencies (SSA) space during the awards period:
- World's first sustainability bond from a sovereign for the Republic of Korea (USD500m 5-year)
- Inaugural Hong Kong Government green bond under the HKD100bn HKSAR Government Green Bond Programme (USD1bn 5-year)
- Second green sukuk under the Green Bond and Green Sukuk Framework of the Republic of Indonesia (USD750m 5.5-year)
The award judges said: "HSBC is the go-to bank for the financing of renewables and for those looking to transition to a less carbon-intensive future. It also pushes scalable innovation in sustainability in a way that perhaps no other bank does."
Daniel Klier, HSBC's Global Head of Sustainable Finance, said: "Winning this award in three regions is testament to our leadership in sustainable finance. I expect to see an acceleration of climate-aligned financing as the world recovers from COVID-19. We are in a great position to support a more sustainable and resilient recovery."
Leading Sustainable Finance in Singapore
In Singapore specifically, HSBC has been at the forefront of several market-leading transactions and has launched several innovative sustainability-linked solutions.
- First green loan for Build-to-Lease Industrial Park Asset in SG: Soilbuild Group Holdings' first green loan (SGD248m, HSBC Sole Green Structuring Arranger and joint Mandated Lead Arranger)
- First multi-currency green loan secured by SG company: City Developments Limited's first green loans; first in SG to be used for new property developments (SGD500m, HSBC Structuring Advisor)
- Supported SG company to raise first green loan in Ireland: Ireland's first ever GLP1 compliant green loan for Oxley Holdings (EUR77.3m, HSBC Sole Lender and Green Loan Coordinator)
- Supported client to raise its first sustainability-linked RCF in Asia: Louis Dreyfus's first sustainability-linked revolving credit facility in Asia (USD650m)
- HSBC SME Green Loan – a first for the Singapore market recognising SG industry certifications for Loan qualification
- HSBC Green Deposit Account – Singapore first of HSBC's markets to launch the product for corporate clients
Tony Cripps, Chief Executive Officer, HSBC Singapore, said: "This is a great win for the Bank and we are proud to have played a significant role from Singapore, having executed a number of significant market-leading sustainability-backed transactions and working with the industry to develop the Republic as a hub for Sustainable Finance."
In addition, HSBC has been working with industry and regulators in Singapore to develop the country's position as a sustainable finance hub, including:
- Co-Chair of Banking Workstream of the MAS Environmental Risk Management Working Group to strengthen financial institutions' resilience to environmental risk and support the transition to a sustainable economy
- Sponsored the Singapore Institute of International Affairs "Financing Sustainable Infrastructure in ASEAN" report (published in April 2020)
- Sponsored the Climate Bonds Initiative ASEAN Report (published May 2020)
COVID-19 Relief Efforts
HSBC has also been contributing to Covid-19 relief efforts by supporting the issuance of a number of pandemic alleviation social bonds, including the first such deal in the international markets from Bank of China Macau Branch, where proceeds were used to provide loans to micro, small and medium-sized enterprises hit by the effects of the pandemic.
Mr. Cripps continued: "As the world embarks on its journey of recovery from the impact of the pandemic, this is also a pivotal opportunity for societies and businesses to redefine their strategies in line with ESG principles and embed resilient sustainability measures as a core part of what they do. HSBC will continue to play our role in the transition to a low carbon economy by doing what we are good at – leading the conversations about tackling climate change, and supporting clients with innovative sustainable finance solutions."
HSBC was also named Euromoney's Best Bank for Sustainable Finance for the Middle East and Western Europe regions in the prestigious awards organised by the global business and finance publication.
Globally, HSBC has pledged to provide USD100bn of sustainable finance, facilitation and investment by 2025. At the end of 2019, we have reached USD52.4bn of that goal, of which USD43.6bn relates to green or sustainable products. Asia as a region has contributed 30 per cent to this cumulative progress.
Dealogic, from 1 April 2019 to 31 March 2020