HSBC issues $1bn green bond

HSBC has issued a $1 billion (£750m) corporate sustainable development bond. The bank says the bond, based on the UN’s Sustainable Development Goals (SDGs), aims to finance projects benefiting communities […]

Register now!

By Jonny Bairstow

HSBC has issued a $1 billion (£750m) corporate sustainable development bond.

The bank says the bond, based on the UN’s Sustainable Development Goals (SDGs), aims to finance projects benefiting communities and the environment by improving access to education, healthcare, fresh water and sanitation.

The money will also be used to increase the share of renewables in the global energy mix and build sustainable cities and transport systems, as well as help communities to mitigate the impacts of climate change.

The bank suggests nearly 70% of global investors intend to increase their low carbon investments to accelerate the transition to a clean energy economy.

The HSBC bond was three times oversubscribed, with US investors taking 80% of the final allocations – the rest was split largely between Europe and Asia.

Stuart Gulliver, HSBC Group Chief Executive, said: “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.”

Barclays has recently issued a €500 million (£441m) green bond.