Standard Chartered has launched its first-ever social bond, a €1bn (US$1.086bn) issuance aimed at driving sustainable development in low-income countries across its emerging market footprint.
The funds raised will be used to support small and medium-sized enterprises (SMEs), enhance access to essential services such as healthcare and education and invest in critical infrastructure projects.
With 99% of the bank’s social assets located in Asia, Africa and the Middle East, this initiative is set to deploy much-needed capital in regions facing acute financial gaps.
The €1bn (US$1.086bn) 8-year Non-Call 7-year bond will prioritise lending to SMEs, fostering job creation and economic empowerment.
A particular focus will be placed on supporting women-led businesses, expanding access to finance and improving food security.
The proceeds will also fund projects aligned with the bank’s Sustainability Bond Framework, ensuring investment in essential social infrastructure.
With an estimated US$4.2tn in annual investment required to support sustainable development in emerging markets, mobilising private sector capital is crucial.
Standard Chartered’s social bond directly contributes to this effort by channelling resources into high-impact initiatives.
“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,” says Diego De Giorgi, Group Chief Financial Officer at Standard Chartered.
“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 is providing financial solutions to support the enduring growth of our markets.”
The bank’s sustainable finance asset pool includes US$5.5bn in social assets, with the majority concentrated in:
By leveraging this issuance, Standard Chartered aims to drive inclusive growth across its global footprint.
Salman Ansari, Global Head of Capital Markets at Standard Chartered, says: “This is the Group’s first Social bond issuance, following three successful sustainability bonds issued by Standard Chartered PLC.
“The transaction underlines the bank’s commitment to inclusive growth and development, and is aligned with our brand promise, Here for Good. The oversubscription of this issuance indicates the continued strong global investor demand for our credit and differentiated sustainability story.”
Standard Chartered’s commitment to sustainable finance is already delivering tangible impact across its markets.
Recent initiatives include:
Marisa Drew, Chief Sustainability Officer at Standard Chartered, explains: “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 fact that 99% of our social assets are located in Asia, Africa and the Middle East is a differentiating factor for us as an organisation and enables us to offer clients a dynamic sustainability proposition to jointly drive impact across our footprint.”
Standard Chartered is expanding its sustainable finance initiatives with a range of innovative products:
Daniel Hodge, Group Treasurer at Standard Chartered, comments: “Investors in our Sustainable Finance offering enjoy the benefit of facing a UK-regulated Bank counterparty, while the impact delivered through our products and in this case, through our first Social bond, takes place in many of the most dynamic and high-growth developing markets.”
With this inaugural Social Bond, Standard Chartered is not only mobilising capital but also driving meaningful social and economic transformation in the regions that need it most.
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