HSBC India launches 'Green Deposit Programme' to finance eco-friendly projects1 min read . Updated: 20 Aug 2020, 09:55 PM IST
The bank will provide will provide customers with a quarterly report containing portfolio-level information regarding the use of the deposited funds
HSBC India on Thursday launched its 'Green Deposit Programme' for corporate clients. Under this new initiative bank will finance green initiatives such as renewable energy, clean transportation, pollution prevention and control, green building, sustainable water, waste water management and others, providing a simple way for companies to support environmentally-beneficial projects.
The 'Green Deposit' is available in INR as 'Term Deposit'. "This innovative and unique fixed tenure deposit will go towards financing eligible businesses and projects that promote the transition to a low-carbon, climate resilient and sustainable economy," the bank said in a statement.
The bank will provide will provide customers with a quarterly report containing portfolio-level information regarding the use of the deposited funds. "As a product, 'Green Deposit' offers stable principal, pre-agreed return and similar levels of principal protection as a bank deposit," the bank said.
"Corporates looking for inclusion of a sustainability agenda into their treasury activities or those that have limited opportunities for investment in environmentally beneficial projects will find this product particularly relevant," HSBC said in a statement.
Commenting on the launch of the Green Deposit Programme, Hitendra Dave, Head-Global Banking and Markets, HSBC India said, "Our Green Deposit proposition is designed to help corporates participate in the sustainability agenda with the safety and assurance of a bank deposit. It is equally suitable for corporates who have either a mature sustainability agenda or are looking to start on this path. This product is aligned with our global commitments towards sustainable financing and will allow clients to participate in the journey towards a low carbon economy."
By leveraging a deep understanding of sustainable finance and international green finance benchmarks, HSBC India has already established its capability and expertise in Green Loans, the bank said.
HSBC India had recently financed the green loan aligned with the Green Loan Principles in the renewables sector as the Sole Lender, the Sole Green Loan Advisor and the Sole Account Bank for a 250 MW wind power project at Kutch, Gujarat, India set up by a leading renewable company in India, the bank said.