HSBC Bank Australia is making its ‘green products’ and sustainability-linked loans available to a wider range of commercial customers, saying it is responding to growing demand.
The bank, which claims to be global leader in the segment, has offered sustainable finance to very large companies on a bespoke basis.
Now it has developed a series of products, including green term loans, green revolving credit facilities and sustainability-linked loans.
These will be available to all the bank’s commercial clients, which includes companies with a minimum of around A$50 million of annual revenue.
HSBC Bank Australia head of commercial banking, Steve Hughes, said in a statement: “Companies increasingly want to differentiate themselves by highlighting their commitment to sustainability and our loans allow them to do so.”
Green term loans and revolving credit facilities are available for financing new or existing eligible green projects. Examples include the production or transmission of renewable energy, adoption of clean transport and sustainable waste management.
Sustainability-linked loans offer a discount on a loan’s interest rate margin if a company reaches a sustainability performance target, such as a reduction in water consumption or a decrease in greenhouse gas emissions.
Bloomberg reported that the volume of sustainable debt originated globally in 12019 was US$465 billion – up 78 per cent on the previous year.