HSBC Bank USA, N.A., (HSBC), part of the HSBC Group, today
announced that it is offering Sustainability-Linked Loans (SLL)
that will enable U.S businesses to tie their borrowing to
activities that support a more sustainable, resilient and
prosperous world.
HSBC SLLs are available in a variety of corporate loans and
credit facilities, with terms linked to pre-determined
sustainability performance targets (SPTs). Achieving SPTs results
in a lower interest expense, effectively bringing financial
incentives to the borrower’s sustainability strategy.
In partnership with clients, HSBC structures SLLs in accordance
with the Sustainability Linked Loan Principles, which are voluntary
global guidelines set by the independent Loan Market Associations,
whereby SPTs are to be meaningful and ambitious for the business,
and performance is verified and reported regularly.
“We want to provide loans and access to credit in ways that meet
the needs of American businesses, from financing growth and
investment to support their sustainability strategy,” said Julie
Bennett, Americas Head of the ESG and Strategic Solutions Group,
HSBC Global Banking. “SLLs are another example of how we are
embedding sustainability into our products and services, including
access to capital markets, lending, transaction banking and
advisory services.”
While tailored to be company specific, examples of SPTs include
greenhouse gas emissions reduction, use of renewable energy,
diversion of waste from landfills and reduced water use, as well as
social and diversity metrics like increased workforce
diversity.
Demonstrating innovation in SLLs, Mercon Coffee Group partnered
with HSBC in the first coffee-only sustainability-linked revolving
credit facility. Mercon aims to make its supply chain as
sustainable as possible – from water and forest conservation and
farm management, to implementing the best social practices in their
producers’ coffee plantations – and this syndicated facility helps
to fund Mercon’s sustainability goals through its sustainable
production program LIFT. The interest cost is linked to Mercon’s
performance against defined environmental and social SPTs, and HSBC
will reduce the interest rate on the loan when Mercon meets the
SPTs.
“Approximately 125 million people worldwide depend on coffee for
their livelihood, and 25 million small farmers producing 80 percent
of the world’s coffee,” said Tony Nanez, North America Head of
Commodity Finance, HSBC Global Trade and Receivables Finance. “HSBC
is proud to support Mercon in its mission to support these farmers
through our participation in their syndicated Sustainable-Linked
financing facility.”
HSBC will host a LinkedIn Live broadcast, How to drive your ESG
strategy: Lessons from coffee and cargo, on Thursday, June 17 at
12pm ET. Panelists are HSBC clients Juan Pablo Ibarra, COO at
Mercon Coffee Corp., and Matt Borys, Treasurer and Head of Capital
Markets at Atlas Corp (parent company of Seaspan), who will be
talking about their overarching ESG strategies and how they are
forging new paths in sustainable finance. The discussion will be
moderated by Kelly Fisher, US Head of Corporate Sustainability,
HSBC.
“By linking environmental and social sustainability targets to
interest payments on in loans and credit facilities, we are
mobilizing finance and supporting clients such as Mercon to achieve
their sustainability vision,” said Kelly Fisher, US Head of
Corporate Sustainability, HSBC. “Offering SLLs is part our
commitment to not only play our part in, but lead the global
transition to net zero as a provider of responsible banking
services.”
More information about the opportunities for
sustainability-linked loans and facilities to support the needs of
American businesses is available at
www.business.us.hsbc.com/sustainability.
HSBC Group announced in October 2020 a net zero strategy to
align its provision of finance with the Paris Agreement goal of net
zero by 2050 across all sectors in its client portfolio. At the
core of the strategy is a commitment to support customers on their
sustainability journey. HSBC expects to provide between $750
billion and $1 trillion in financing and investment to enable its
clients’ net zero transition between 2020 and 2030.
HSBC also has launched Business Plan for the Planet, a global
campaign to build further awareness of the importance of a net zero
economy, and to showcase how HSBC can empower businesses with the
understanding, the capabilities and the resources to help them make
a low-carbon transition.
Note to editors:
About HSBC
HSBC USA
HSBC Bank USA, National Association (HSBC Bank USA, N.A.) serves
customers through retail banking and wealth management, commercial
banking, private banking, and global banking and markets segments.
It operates bank branches in: California; Washington, D.C.;
Florida; Maryland; New Jersey; New York; Pennsylvania; Virginia;
and Washington. HSBC Bank USA, N.A. is the principal subsidiary of
HSBC USA Inc., a wholly-owned subsidiary of HSBC North America
Holdings Inc. In the United States, deposit products are offered by
HSBC Bank USA, N.A., Member FDIC, investment and brokerage services
are provided through HSBC Securities (USA) Inc., (Member
NYSE/FINRA/SIPC) and insurance products are provided through HSBC
Insurance Agency (USA) Inc. HSBC Bank USA, N.A., is an Equal
Housing Lender.
HSBC Commercial Banking
For over 150 years we have been where the growth is, connecting
customers to opportunities. Today, HSBC Commercial Banking serves
over 1.3 million customers across 53 markets, ranging from small
enterprises focused primarily on their home markets through to
corporates operating across borders. Whether it is working capital,
term loans, trade finance or payments and cash management
solutions, we provide the tools and expertise that businesses need
to thrive. As the cornerstone of the HSBC Group, we give businesses
access to a geographic network covering more than 90% of global
trade and capital flows.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210616006015/en/
Media enquiries to: Rob Sherman US Head of Media
Relations HSBC (646) 939-6998 robert.a.sherman@us.hsbc.com
HSBC (NYSE:HSBC)
Historical Stock Chart
From Mar 2024 to Apr 2024
HSBC (NYSE:HSBC)
Historical Stock Chart
From Apr 2023 to Apr 2024