Banking giant HSBC has announced the formation of a dedicated sustainable and transition finance team as part of its expansion plans in the Middle East, North Africa and Turkey (MENAT).
The team will help institutions, corporates and individuals transition to a more sustainable economy.
Speaking at Abu Dhabi Sustainability Week, Noel Quinn, HSBC Group chief executive, said: “Our best chance to achieve a successful global transition to net-zero is in partnership, where the public and private sectors are working together to create the optimal conditions for sustainable growth and are aligned on a common goal.”
Gareth Thomas, HSBC’s head of global banking in MENAT and co-lead of the team, added: “Our customers in MENAT are interested in an increasing range of sustainable finance options and the creation of our new Sustainable and Transition Finance Team is designed to specifically respond to that demand. HSBC is committed to helping our customers build a future based on sustainable prosperity.”
In 2020, HSBC saw a six-fold increase in its sustainable and transition finance activity in MENAT over 2019, with the bank bringing a number of innovative deals to market.
Most recently, HSBC played a key role in the issuance of the world’s first ‘transition’ sukuk, which was issued by Etihad Airways. The $600 million raised by the airline will be used for energy-efficient aircraft and research and development into sustainable aviation fuel.
HSBC earlier this week announced it has ambitious plans to grow its business in MENAT, saying a rebound in GDP and international trade will position the region as one of the fastest growing in the world over the next decade.
As the nine markets in which the bank operates in the region bounce back from the impact of the Covid-19 pandemic, HSBC said it expects economic growth and international trade in region to outpace the global average and create a raft of new opportunities.
“HSBC has ambitious plans for growth in MENAT, which is positioned to be one of the fastest growing regions of the world over the coming decade,” said Martin Tricaud, HSBC Group CEO for MENAT and deputy chairman of HSBC Bank Middle East Ltd.
“We are investing to support the needs of customers across the entire spectrum of our business, from the investment plans of governments, multinationals and fast-growing smaller companies in our wholesale banking portfolio, to the wealth management needs of the millions of customers in our personal banking portfolio,” he added.
The International Monetary Fund forecasts that the economies of the nine markets in which the bank operates in the region will see the value of gross domestic product (GDP) expand by 34.7 percent in aggregate by the end of 2025, with trade growth expected to follow a similar path.
The bank said it is putting special emphasis on investments in technology, particularly its market leading HSBCnet application for wholesale customers to help them digitise transactional foreign exchange flows and accelerate digital payments.
HSBC said it is also boosting its capabilities for financing and structuring complex solutions for corporate transactions to support business customers as they invest and expand, as well as rolling out new advisory services for sovereign wealth funds and strengthening its capabilities in sustainable finance and trade.
The bank added that it is also expanding its private banking business in the UAE after being granted a licence to operate in the Abu Dhabi Global Market (ADGM), the international financial centre in the nation’s capital.
The ADGM location expands HSBC’s private banking footprint from its current base in Dubai International Financial Centre (DIFC) and follows the 2020 launch of the Jade account, which significantly increased the bank’s offering to the market of high net worth individuals.
“MENAT is a dynamic, entrepreneurial region and a return to solid growth for GDP and trade will provide a host of long term, strategic, sustainable growth opportunities for our customers across the nine markets we serve in the region and we are ready to support them as they build back better from the impact of Covid-19,” Tricaud said.
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