HSBC Launches ‘Green Deposit’ for Financing Green Projects in India

HSBC has launched its Green Deposit programme in India, which will enable the bank’s clients to support green and sustainable projects.

HSBC Green Deposit

British financing institution – HSBC has announced the launch of its Green Deposit programme in India for its corporate clients. The first-of-its-kind product for the Indian market, the Green Deposit will enable the bank’s clients to support greener more sustainable projects. HSBC had clearly stated that the money collected under the product will be exclusively used to finance green initiatives such as renewable energy, clean transportation, pollution prevention and control, green building, sustainable water and wastewater management, etc.

The facility is available only to corporates and in a term deposit format, the bank, which has been in India for over a century, said.

Financing of ecologically sensitive and sustainable initiatives has been a big concern given the higher investments needed for them upfront. A few products like “green bonds” which are subscribed by investors committed to such themes have been successfully tested in the past, while other moves like disincentivizing funding for polluting projects through moves like higher provisioning requirements have also been mooted in the past.

“It is becoming increasingly obvious to business leaders that sustainability is a strategic business imperative,” the bank’s head for global banking and markets Hitendra Dave said.

Further adding that the bank can use its expertise and resources to support its clients’ journey towards embedding sustainability as a strategic priority and added that the proposition is designed to help corporates participate in the sustainability agenda with the safety and assurance of a bank deposit.

The fixed tenure deposits through the product will go towards financing eligible businesses and projects that promote the transition to a low-carbon, climate-resilient and sustainable economy, an official statement said, adding like any other deposit, it offers stable, pre-agreed returns. The bank also said that it will provide customers with a quarterly report containing portfolio-level information regarding the use of the deposited funds.

Corporates looking for the inclusion of sustainability agenda into their treasury activities or those that have limited opportunities for investment in environmentally beneficial projects can find this product relevant, it said, claiming that there has been a demand for increased transparency and accountability on the environmental impact of businesses by a growing segment of stakeholders.

"Want to be featured here or have news to share? Write to info[at]saurenergy.com
Ayush Verma

Ayush Verma

Ayush is a staff writer at saurenergy.com and writes on renewable energy with a special focus on solar and wind. Prior to this, as an engineering graduate trying to find his niche in the energy journalism segment, he worked as a correspondent for iamrenew.com.

      SUBSCRIBE NEWS LETTER
Scroll