Standard Chartered has unveiled its inaugural social bond valued at €1 billion (US$1.086 billion), marking a strategic initiative to promote sustainable development in low-income countries within its emerging markets footprint. This bond issuance is primarily targeted at fostering growth in small and medium-sized enterprises (SMEs), while also enhancing access to essential services such as healthcare and education. India emerges as a major focus, with 57% of the bank's social assets located within the country, followed by Malaysia and Bangladesh among others.
The proceeds from the bond, which is structured as an 8-year Non-Call 7-year offering, will be channelled towards lending to SMEs, ensuring they gain access to necessary finance, thereby creating jobs and empowering women entrepreneurs. Furthermore, part of the funds will be allocated to invest in critical infrastructure projects and improve food security, thereby aligning with the bank's Sustainability Bond Framework. The issuance reflects a response to the investment gap in emerging markets, estimated at USD4.2 trillion annually, for nurturing sustainable development and economic resilience.
The initiative underscores Standard Chartered's commitment to supporting markets with the greatest need for finance, 99% of which are situated across Asia, Africa, and the Middle East. Diego De Giorgi, the bank's Group Chief Financial Officer, stated, "Our first social issuance is an important milestone for the bank and demonstrates Standard Chartered’s unique ability to raise capital in the world’s largest financial centres and deploy it across borders, into those markets where the need for sustainable finance is most acute." This issuance highlights the bank's role at the intersection of capital, trade, and investment flows in both developed and developing economies.
Marisa Drew, Chief Sustainability Officer at Standard Chartered, highlighted that this issuance provides a significant opportunity to mobilise capital at scale for inclusive growth across their markets. Drew remarked, "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 bank's social assets, largely concentrated in Asia, Africa, and the Middle East, enable it to offer clients a compelling sustainability proposition, further enhancing their impact across its territories.
Standard Chartered’s Sustainable Finance asset pool, which the proceeds from this bond will reference, includes USD5.5 billion in social assets. The bank's 2024 Sustainable Finance Impact Report highlighted their efforts in financing clean water infrastructure in Angola and increasing SME access to finance in Uzbekistan. Additionally, through the SC Women’s International Network (WIN) programme, the bank has significantly expanded support for women-led SMEs, tripling the number of women SME clients. The programme is on track to lend USD1 billion to women-led SMEs across Asia and Africa by 2028, reinforcing the bank’s commitment to inclusive economic growth.