Standard Chartered Unveils Sustainable Finance Options with New Borrowing Base Trade Loans

Standard Chartered Unveils Sustainable Finance Options with New Borrowing Base Trade Loans

(IN BRIEF) Standard Chartered has officially launched its Sustainable Finance variants of Borrowing Base Trade Loans (BBTL), enhancing its suite of Sustainable Trade Finance solutions to support the decarbonization of the commodities sector. This innovative financing option will be accessible in the United States, the UK, UAE, South Africa, Singapore, and Hong Kong, with plans for future expansions into additional markets. The BBTL is designed as a secured revolving credit facility tailored to the specific financial needs of businesses, particularly in the commodity sector, allowing them to obtain funding against a diversified pool of collateral such as cash, inventory, or receivables. This arrangement helps clients manage working capital effectively and simplifies trade financing by consolidating multiple transactions under a single loan structure. According to Sofia Hammoucha, Global Head of Trade & Working Capital at Standard Chartered, the introduction of sustainability variants is aimed at empowering clients to adopt more eco-friendly practices, in line with the bank’s commitment to facilitate transitions towards sustainable business models. These new variants incorporate environmental, social, and governance (ESG) criteria into the financing process, recognizing facilities that support the trade of eligible materials like critical metals essential for energy transition. Additionally, the sustainability-linked variants offer differential pricing for companies demonstrating a commitment to ambitious sustainability-related key performance indicators (KPIs), such as reducing carbon emissions and enhancing renewable energy use. Standard Chartered continues to expand its sustainable finance offerings, having recently launched a sustainable trade loan for financial institutions and an ESG-Linked Cash Account.

(PRESS RELEASE) LONDON, 4-Oct-2024 — /EuropaWire/ — In a significant move towards promoting sustainable practices in the commodity sector, Standard Chartered has announced the launch of its Sustainable Finance variants for Borrowing Base Trade Loans (BBTL). This new offering will be available in key markets including the United States, the UK, UAE, South Africa, Singapore, and Hong Kong, with plans for expansion into additional regions in the future. The BBTL is structured as a secured revolving credit facility tailored to meet the unique financing needs of businesses, particularly those engaged in commodities. By allowing businesses to secure funding against a diverse array of collateral—such as cash, inventory, and receivables—this solution helps them effectively manage their working capital while streamlining trade financing through the consolidation of multiple transactions into a single loan.

Sofia Hammoucha, Global Head of Trade & Working Capital at Standard Chartered, stated, “By incorporating sustainability variants into our BBTL offerings, we are equipping our clients with the tools they need to implement more sustainable business practices. This initiative reflects our dedication to supporting clients in their transition towards environmentally responsible operations.” The sustainable finance variants of the BBTL integrate environmental, social, and governance (ESG) criteria into the financing process. This includes recognizing facilities that facilitate the trade of eligible materials aligned with Standard Chartered’s Green and Sustainable Product Framework (GSPF), such as critical metals essential for energy transitions.

Additionally, these sustainability-linked variants provide differential pricing for companies committed to achieving measurable and ambitious sustainability-related key performance indicators (KPIs). These KPIs include goals such as reducing carbon emissions, increasing the proportion of renewable energy in their supply chains, and enhancing diversity within management teams. Standard Chartered continues to broaden its sustainable finance product lineup, having recently introduced a sustainable trade loan specifically for financial institutions and an ESG-Linked Cash Account, further solidifying its commitment to driving sustainable development in the financial sector.

Standard Chartered

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Media Contacts:

Rami Lawand
Standard Chartered
+65 6981 5277
Rami.Lawand@sc.com

Alvina Neo
Standard Chartered
+65 6981 5796
Alvina.neo@sc.com

SOURCE: Standard Chartered