Some of the leading global banks and financial institutions are making a beeline to expand their presence in the rapidly growing global green bonds market.
British banking giant HSBC has announced its pledge to invest $1 billion in green bonds, committing to invest in “high quality liquid assets” through green, social, and sustainability bonds. The bank has also stated that it will only invest in bonds that are aligned with Green Bond Principles. The bank will look to finance projects in various sectors including renewable energy, energy efficiency, clean transportation, and climate change adaptation.
HSBC is a member of several associations and bodies working in the climate finance sector, such as the ICMA Green Bond Principles Executive Committee, Green Growth Platform Financial Advisory Council, and the Climate Bonds Initiative. HSBC is already among the leading participants in the green bonds market. According to the Climate Bonds Initiative, HSBC is the 6th largest underwriter this year in terms of assets covered. The bank has underwritten over $1.5 billion worth of bonds during the first three quarters of this year.
Earlier this year, the bank’s Indian arm announced that it will soon launch green bonds in the country. HSBC India Chairman Naina Lal Kidwai recently announced that the bank will launch green bonds to raise funds for environmentally sustainable projects, and noted that HSBC is the world’s fourth largest issuer of green bonds, and now looking to tap the Indian market as well.