Standard Chartered’s debut social bond issuance has raised €1 billion (US$1.086 billion), with the bank set to direct the funds toward sustainable development efforts in Asia, Africa, and the Middle East. The capital will benefit SMEs, enhance access to vital services, and fund infrastructure projects aimed at addressing the needs of low-income communities.
A Strategic Step Toward Inclusive Growth
Standard Chartered’s latest bond issuance directs capital to emerging markets, with 99% of its social assets targeting areas facing the greatest financial challenges. India leads as the largest recipient at 57%, followed by Malaysia (10%), Bangladesh (6%), Mainland China (5%), and Nepal (4%).
“As a bank that sits at the centre of capital, trade and investment flows, across both developed and developing economies, this issuance highlights how the bank is providing financial solutions to support the enduring growth of our markets,” said the bank.
Backed by the bank’s US$5.5 billion sustainable finance asset pool, the issuance reinforces Standard Chartered’s commitment to driving inclusive growth.
Addressing Key Societal Needs
The proceeds from Standard Chartered’s social bond will finance projects with tangible social impact. Some of the major initiatives include:
Providing Clean Water to 100,000 People in Angola
A €22 million (US$24 million) social loan in partnership with UK Export Finance will fund a rural water supply project in the Quiminha region of Angola. The project involves the rehabilitation of the Quiminha Dam and the construction of new infrastructure to ensure clean water access for 100,000 people.
Supporting SMEs in Uzbekistan
A €114 million (US$124 million) social financing package was structured in collaboration with the Multilateral Investment Guarantee Agency (MIGA) of the World Bank Group. The initiative is designed to support SMEs in key sectors such as agribusiness, wholesale trade, and manufacturing, helping to create jobs and boost economic growth.
Empowering Women Entrepreneurs
The SC Women’s International Network (WIN) programme is expanding beyond India into Kenya, Malaysia, Vietnam, and Pakistan. The programme provides tailored financial products, networking opportunities, and business development support for women-led SMEs.
Standard Chartered aims to lend US$1 billion to women entrepreneurs across Asia and Africa by 2028.
“This first social bond issuance underscores our commitment to people, communities and businesses, and provides a unique opportunity to mobilise capital at scale towards inclusive growth and development across our markets. The fact that 99% of our social assets are located in Asia, Africa and the Middle East is a differentiating factor for us as an organisation and enables us to offer clients a dynamic sustainability proposition to jointly drive impact across our footprint,” Marisa Drew, Chief Sustainability Officer at Standard Chartered said.
Expanding Sustainable Finance Solutions
Standard Chartered is strengthening its sustainable finance portfolio through a variety of innovative initiatives:
Sustainable Accounts – Allow clients to contribute to sustainability-focused projects while maintaining access to funds.
Sustainability-Linked Trade Finance – Introduced ESG-integrated Borrowing Base Trade Loans (BBTL) to encourage businesses to adopt sustainable practices.
Innovation Hubs – Established hubs focused on Adaptation Finance, Carbon Markets, Blended Finance Programmes, and Nature Positive Solutions.
Since January 2021, the bank has mobilised US$121 billion in sustainable finance, with 78% of its assets concentrated in Asia, Africa, and the Middle East.
Daniel Hodge, Group Treasurer at Standard Chartered, emphasised the credibility and impact of the bank’s sustainable finance efforts:
“Investors in our Sustainable Finance offering enjoy the benefit of facing a UK-regulated Bank counterparty, while the impact delivered through our products and in this case, through our first Social bond, takes place in many of the most dynamic and high-growth developing markets.”
Conclusion
Standard Chartered’s oversubscribed bond issuance highlights the increasing investor interest in sustainability-driven financial products. The bank’s emphasis on high-growth emerging markets solidifies its leadership in the sustainable finance space.