HSBA Hsbc Holdings Plc

By Paul Clarke

Of Financial News

HSBC Holdings PLC created a new division of 35 dealmakers that includes a team dedicated to environmental, social and governance issues that will draw on "hundreds" of bankers across the U.K. lender.

In the latest shake-up to its global banking business under new bosses Greg Guyett and Georges Elhedery, the bank unveiled a unit called Strategic Solutions Group, which will be led by Nik Dhanani, an HSBC veteran.

The division will be spread across Europe, the U.S. and Asia, the bank said in a statement, and aims to bring all of HSBC's sector and product teams together for deals.

As part of the changes, a new ESG solutions division will sit within the team. HSBC's move follows Citigroup Inc. and Deutsche Bank AG, which have both created dedicated ESG investment banking teams this year in a bid to capitalize on what is expected to be a surge in activity in this area.

Sustainable bonds in particular have surged this year, with a record $131 billion issued during the second quarter of 2020, according to Refinitiv data.

Greg Guyett, co-CEO of global banking and markets at HSBC, said that Covid-19 presents a "unique opportunity to rebuild our economies and companies so they are more financially resilient and can transition to more sustainable business models".

"This new group will work with all our bankers across sector, product and geography to assess client needs and deliver actionable solutions which are in the best interests of our clients," he added.

The new ESG unit will be headed by Jonathan Drew, based in Hong Kong, working with Farnam Bidgoli in London and Julie Bennett in New York.

The latest changes come amid a broader bank overhaul that will see 35,000 jobs cut and around $100 billion in risk-weighted assets stripped out, largely from its trading business.

In April, HSBC unveiled new units including a Client Leadership team led by HSBC veteran Patrick Nolan, aimed at targeting corporate restructurings that are likely to emerge from the Covid-19 crisis, and a new capital financing and investment-banking coverage team comprising senior bankers across capital markets and mergers and acquisitions.

The U.K. lender has frozen recruitment after restarting job cuts that were paused amid the peak of the coronavirus crisis. However, it continues to selectively hire senior investment bankers, latterly hiring Adam Bagshaw as global co-head of advisory and investment banking coverage from Deutsche Bank.

Website: www.fnlondon.com

(END) Dow Jones Newswires

July 27, 2020 10:01 ET (14:01 GMT)

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