HSBC USA Expands Sustainable Finance Offering with Sustainability-Linked Loans for Commercial Bank Customers | Business


NEW YORK – (BUSINESS WIRE) – June 16, 2021–

HSBC Bank USA, NA, (HSBC), part of the HSBC Group, today announced that it offers Sustainable Development Loans (SLLs) that will allow US businesses to tie their borrowings to activities that support a more sustainable, resilient and prosperous world.

HSBC SLLs are available in a variety of business loans and credit facilities, with terms tied to predetermined Sustainability Performance Objectives (SPTs). Achieving SPT results in reduced interest charges, effectively providing financial incentives to the borrower’s sustainability strategy.

In partnership with its customers, HSBC structures SLLs in accordance with Principles of sustainability loans, which are voluntary global guidelines established by independent lending market associations that SPTs should be meaningful and ambitious for the business, and performance is verified and reported regularly.

“We want to provide loans and access to credit in a way that meets the needs of American businesses, financing growth and investments to support their sustainability strategy,” said Julie Bennett, Americas manager of the ESG and solutions group. strategy, HSBC Global Banking. “SLLs are another example of how we integrate sustainability into our products and services, including access to capital markets, loans, banking and advisory services. “

Although designed to be company specific, examples of SPT include reducing greenhouse gas emissions, using renewable energy, diverting waste from landfills and reducing water consumption. , as well as social and diversity measures such as increased diversity in the workforce.

Be innovative in SLL, Mercon Coffee Group partnered with HSBC on the world’s first sustainable coffee-only revolving credit facility. Mercon aims to make its supply chain as sustainable as possible – from water and forest conservation and farm management to implementing social best practices in their producers’ coffee plantations – and this facility unionized helps fund Mercon’s sustainability goals through its LIFT sustainable production program. The interest cost is tied to Mercon’s performance against the defined environmental and social SPTs, and HSBC will reduce the loan interest rate when Mercon meets the SPTs.

“About 125 million people around the world depend on coffee for their livelihoods and 25 million smallholder farmers produce 80% of the world’s coffee,” said Tony Nanez, North America head of commodity finance, HSBC Global Trade and Receivables Finance . “HSBC is proud to support Mercon in its mission to support these farmers through our participation in their Sustainable-Linked syndicated funding mechanism. “

HSBC will host a LinkedIn Live broadcast, How to pilot your ESG strategy: lessons from coffee and freight, Thursday, June 17 at 12 p.m. ET. Panelists are HSBC clients Juan Pablo Ibarra, COO at Mercon Coffee Corp., and Matt Borys, Treasurer and Head of Capital Markets at Atlas Corp (parent company of Seaspan), who will talk about their overall ESG strategies and how they are forging new avenues of sustainable finance. The discussion will be moderated by Kelly Fisher, Head of US Corporate Sustainability, HSBC.

“By linking environmental and social sustainability goals to interest payments on loans and credit facilities, we are mobilizing finance and helping clients like Mercon realize their vision of sustainability,” said Kelly Fisher, Manager of corporate sustainability in the United States at HSBC. “Providing SLLs is part of our commitment to not only play our role, but also lead the global transition to net zero as a responsible banking provider. “

The HSBC Group announced in October 2020 a net zero strategy to align its financing offer with the Paris Agreement target of net zero by 2050 in all sectors of its client portfolio. At the heart of the strategy is a commitment to support customers in their sustainable development journey. HSBC plans to provide between $ 750 billion and $ 1,000 billion in funding and investment to enable the net zero transition of its customers between 2020 and 2030.

HSBC has also launched Business plan for the planet, a global campaign to raise awareness of the importance of a net zero economy and show how HSBC can give businesses the understanding, capabilities and resources to help them make a low carbon transition.

HSBC Bank USA, National Association (HSBC Bank USA, NA) serves clients in the retail banking and wealth management, commercial banking, private banking, world banking and market segments . It operates bank branches in: California; Washington DC; Florida; Maryland; New Jersey; New York; Pennsylvania; Virginia; and Washington. HSBC Bank USA, NA is the principal subsidiary of HSBC USA Inc., a wholly owned subsidiary of HSBC North America Holdings Inc. In the United States, deposit products are offered by HSBC Bank USA, NA, Member FDIC, services investment and brokerage services are provided by HSBC Securities (USA) Inc., (NYSE / FINRA / SIPC member) and insurance products are provided by HSBC Insurance Agency (USA) Inc. HSBC Bank USA, NA, is a Equal Housing Lender.

For over 150 years, we’ve been where growth is located, connecting customers to opportunities. Today, HSBC Commercial Banking serves more than 1.3 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.

CONTACT: Media inquiries to:

Head of Media Relations in the United States




Copyright Business Wire 2021.

PUB: 06/16/2021 6:32 PM / DISC: 06/16/2021 6:32 PM

Copyright Business Wire 2021.


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