Sustainable Financing and Investment

Infrastructure Financing allows sponsors to raise capital on the back of cash flows generated by a particular project or asset, allowing sponsors to raise financing with limited-to-no recourse and off-balance sheet.

HSBC provides a full suite of services such as:

Direct lending, to the project or in the form of an Equity Bridge Loan to sponsors Financial Advisory including: debt advisory, bid situations, procurement advisory, project bonds, and refinancing. Key business contact (in each market in the region)

Export Finance involves financing projects that include the importation of capital equipment and services, providing borrows with access to longer tenor facilities, lower costs and provides an attractive source of long-term funding for capex expenditure

HSBC provides Export Credit Agency financing perspective, structuring, coordination, advisory and lending expertise.

The above funds help customers:

• Diversify investments
• Structure their portfolio
• Choose from a wide variety of asset classes

HSBC GIF Lower Carbon Bond Fund: invests for long-term total return (meaning capital growth and income) in a portfolio of bonds issued by companies. The fund aims to create a portfolio that has a lower carbon footprint that its reference benchmark: Bloomberg Barclays Global Aggregate Corporates Diversified Index Hedged USD.

Blackrock (BGF)New Energy fund (Blackrock Sustainable Energy Fund): invests globally, with at least 70% of its total assets in equity securities of sustainable energy companies. Sustainable energy companies are those which are engaged in alternative energy and energy technologies including: renewable energy; renewable energy developers; alternative fuels; energy efficiency; enabling energy and infrastructure.

The Fund will not invest in companies that are classified in the following sectors (as defined by Global Industry Classification Standard): coal and consumables; oil and gas exploration and production; and integrated oil and gas.

Green loans are term lending products that have the characteristics aligned with the four components of the Green Loan principles. Green Loan proposition will allow customers to meet their sustainable agendas, by actively attributing funds to green projects and building customer profiles within the Green Finance market.

Sustainability-Linked Loans (SLL) incorporate Environmental, Social, and Governance (ESG) criteria into financing, evidencing implementation of their customers Corporate Social Responsibility strategy as they set specific targets and track their progress. SLL enables you to have a financial reward for your sustainable behavior by paying less interest when you reach you ESG objectives.

With an increased focus on a transition to a sustainable global economy, sovereigns, corporates and financials have increasingly looked at raising sustainable financing through the bond market. There are three main categories of Sustainable Financing bonds: Green bonds, social bonds and sustainable bonds with the classification being linked to the use of proceeds.

HSBC is a market leader in arranging sustainable financing bonds globally and in the region. As such, we are well positioned to assist issuers in undertaking such financing.

Designed to support the working capital requirement of our clients that fulfill the Green Loan Principles and measurably contribute towards an ESG agenda.

Our solutions are inclusive of Trade Loans, Guarantees, Receivables Finance, Exports & Imports, Commodity Structured Trade Finance, and distribution.