HSBC UK Commercial Bank has unveiled a new green finance proposition.
The new range – available for small to medium enterprises (SME) through to large corporates – includes a Green Loan, a UK industry first Green Revolving Credit Facility (RCF) and a Green Hire Purchase, Lease and Asset loan.
Amanda Murphy, HSBC UK head of commercial banking, said: “With the Government committing the UK to reach net zero carbon emissions by 2050, sustainability is increasingly important for companies of all sizes. We can now support their aspirations through our comprehensive Green lending proposition, which supports businesses as they pursue sustainable and environmentally-focused activities.”
The range includes:
Green Loans
Following a pilot launch to larger corporates last year, HSBC UK has broadened its Green Loan proposition to SMEs and mid-market companies wanting to secure loans for sustainable activities. The minimum Green Loan starts at £300,000, enabling a broad range of companies to access finance to support sustainability projects.
Green RCF
The UK industry first Green RCF enables companies to access funds when required, depending on sustainable cash flow needs, and is available for a minimum loan value of £1 million. Customers can adopt HSBC UK’s Green Framework to manage their green cash flows and meet the four pillars of the Green Loan Principles.
Green Hire Purchase, Lease and Asset loan
The Green Hire Purchase, Lease and Asset loan product facilitates the financing of green assets through hire purchase, lease and asset loan.
HSBC UK has aligned its Green Lending offering to the Loan Market Association’s Green Loan Principles3, which aims to create market standards and guidelines, providing a consistent methodology for use across the wholesale green loan market.
Murphy said: “HSBC UK was the first bank to have a specific offering aligned to the Green Loan Principles and we’ve become the first bank to offer a Green RCF; we continue to innovate in this space. This is part of HSBC’s global commitment to provide $100 billion in sustainable financing and investment by 2025.”