Standard Chartered raises 1 billion Euro via first social bond to support ‘low income countries’, commits 57% for India

Standard Chartered Plc has raised one billion euros, about ₹9,400 crore, by issuing the first social bond to support sustainable development projects across the global bank's emerging market footprint, including India. India is among the key markets for capital deployment from bond issuance.

The eight-year bond will primarily facilitate lending to small and medium-sized enterprises (SMEs), ensuring access to finance, helping create jobs, and empowering and nurturing women-owned SMEs. More than 50 per cent of the total funds raised will be allocated to India for sustainable projects.

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Standard Chartered said proceeds will also finance access to essential services, including healthcare and education, and will facilitate investment into affordable basic infrastructure and food security, which aligns with the social activities set out in the bank's Sustainability Bond Framework.

Diego De Giorgi, Group Chief Financial Officer at Standard Chartered, said: “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. As a bank that sits at the centre of capital, trade, and investment flows across both developed and developing economies, this issuance highlights how the bank provides financial solutions to support the enduring growth of our markets.”

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The top five countries where Standard Chartered social assets are located include India (57 per cent), Malaysia (10 per cent), Bangladesh (six per cent), Mainland China (five per cent), and Nepal (four per cent).

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"Today, around $4.2 trillion in annual investment is needed across emerging markets to facilitate sustainable development, build resilience across businesses and communities, and facilitate enduring growth," said the bank.

"Bridging this gap requires the mobilisation of private sector capital into these markets, channelling finance towards outcomes that are critical to inclusive, long-term prosperity," added the international cross-border bank.

The proceeds raised from the inaugural social issuance will reference Standard Chartered’s Sustainable Finance asset pool, which includes $5.5 billion in social assets - with 99 per cent of these located in Asia, Africa and the Middle East. "This ensures that capital raised through this issuance will support markets with the greatest demand for finance," said the bank.

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“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," said Marisa Drew, Chief Sustainability Officer at Standard Chartered.

"The fact that 99 per cent of our social assets are located in Asia, Africa and the Middle East is a differentiating factor for us as an organisation. It enables us to offer clients a dynamic sustainability proposition to jointly drive impact across our footprint," added Marisa Drew of Standard Chartered.