HSBC Brings Unique Suite of Sustainable Finance Products to Canadian Businesses
Vancouver, British Columbia – (COMMERCIAL THREAD) – HSBC Bank Canada today announced the launch of five new sustainable financing tools for commercial and global bank customers. Available to Canadian businesses of all sizes, Green Deposits, Green Trade Finance, Green Revolving Credit Facilities, Sustainability Loans and Green Equipment Finance join HSBC’s Successful Green Loans launched in 2019. With the new line of sustainable finance offerings, HSBC became the first bank in Canada to apply sustainable finance market principles to trade and deposit products.
“HSBC is the first bank in Canada to offer such a comprehensive range of options for Canadian businesses to take sustainability action,” said Alan Turner, Head of Commercial Banking, HSBC Bank Canada. “To date, much of the focus has been on the large enterprise and institutional markets. With these new tools, supporting companies to achieve their sustainable development goals is no longer the prerogative of large companies. Tools are now also available for small and medium businesses.
Companies can now include sustainability in their treasury operations with overnight savings and term investment options in Canadian and US dollars. The deposits will be eligible to finance loans for customer green initiatives such as renewable energy, energy efficiency and biodiversity conservation, providing businesses with an easy way to support environmentally beneficial projects. Clients will receive a quarterly portfolio-level view of how their funds have been deployed to support green projects, and they will be able to manage their green account as simply as a regular deposit account. The introduction of green deposits is a first on the market in Canada.
Sustainable trade finance
Combining HSBC’s expertise and leadership in sustainable and trade finance, sustainable trade finance offers a wide range of applications that can be particularly useful for Canadian companies doing international business. It supports environmentally and socially sustainable business activities throughout the business cycle, from the bidding process and issuance of a payment order to shipping and sales execution, all aligned with the principles of green lending. The introduction of sustainable trade finance is a market first in Canada.
Green revolving credit facilities (RCF)
HSBC first offered green loans in 2019 and leveraged the in-demand product to offer green revolving credit facilities. RCFs allow businesses to access funds as needed based on their cash flow needs, with a minimum loan value of $ 500,000.
Sustainable development loans
Canadian businesses can now link their borrowing costs to their progress in meeting sustainability goals through sustainability loans. With this type of loan, the interest rate is linked to the achievement by the company of key performance objectives in terms of sustainable development, which may include the reduction of greenhouse gas emissions, the use of increased renewable energy, greater diversion of waste from landfills and reduced water consumption, as well as governance measures such as increased diversity of the workforce. This product has been available to selected customers since March 2019 and is now being rolled out more widely to all HSBC commercial bank customers.
Financing of green equipment
Green equipment financing, or green leasing, helps companies finance the acquisition of equipment with tangible environmental benefits, in accordance with the principles of the green loan market.
Advice dedicated to Canadian companies
HSBC Bank Canada recently created an advisory unit dedicated to sustainable finance. This capability enables HSBC to share practical and global knowledge on how companies can get support to achieve their sustainability goals.
“Today almost all customers want to talk about ESG. We know from experience that small and medium-sized businesses find it difficult to justify sustainability spending, ”said Angie Hall, Head of Sustainable Finance. “These products will make it easier for main street and mid-market businesses to start their journey to sustainability.”
Globally, HSBC has helped establish industry principles that govern how ‘green’ money is raised and spent and is committed to aligning funded emissions to net zero by 2050 or earlier. , in accordance with the objectives of the Paris Agreement. To achieve this, HSBC aims to provide between $ 750 billion and $ 1,000 billion in funding and investment for the global transition by 2030. HSBC is a founding member of the industry-led Net Zero Banking Alliance (NZBA) and organized by the UN to bring collaboration and coherence in the collective efforts of the financial sector to achieve the objectives of the Paris Agreement. The NZBA was co-launched by the Prince of Wales Sustainable Markets Initiative Financial Services Working Group (FSTF), chaired by HSBC Managing Director Noel Quinn.
In Canada, HSBC led the market with its green loan offering in 2019. A leader in Canadian green bonds, HSBC was selected earlier this year as one of two structuring advisors for the first green bond from the Government of Canada. HSBC Bank Canada also recently launched Energy Efficiency and Electric Vehicle Loans for personal banking customers to help finance a plug-in electric or hybrid vehicle, solar panels for their homes, energy efficient appliances. energy, windows, etc.
All products subject to credit availability.
Note to editors:
HSBC Commercial Banking
For over 150 years, we’ve been where growth is located, connecting customers with opportunities. Today, HSBC Commercial Banking serves approximately 1.4 million customers in 53 markets, ranging from small businesses focused primarily on their home market to businesses operating across borders. Whether it’s working capital, term loans, business finance, or payment and cash management solutions, we provide the tools and expertise businesses need to thrive. Cornerstone of the HSBC Group, we give companies access to a geographic network covering more than 90% of global trade and capital flows. For more information visit: http://www.hsbc.com/about-hsbc/structure-and-network/commercial-banking
HSBC Bank Canada
HSBC Bank Canada, a subsidiary of HSBC Holdings plc, is the country’s leading international bank. We help businesses and individuals across Canada do business and manage their finances at home and abroad through three global business lines: Commercial Banking, Global Banking & Markets, and Banking personal and heritage. HSBC Holdings plc is headquartered in London, UK, and serves clients worldwide from offices in 64 countries and territories in Europe, Asia, North America, Latin America, Middle East and in North Africa. With assets of US $ 2,976 billion as of June 30, 2021, it is one of the largest banking and financial services organizations in the world.