LONDON (India CSR): In a landmark move towards financial inclusion and sustainability, Standard Chartered has issued its first-ever Social Bond, aimed at supporting low-income and emerging markets. The EUR 1 billion, 8-year Non-Call 7-year issuance will channel funds into small and medium-sized enterprises (SMEs), women-owned businesses, healthcare, education, and infrastructure projects across Asia, Africa, and the Middle East.
Empowering Communities Through Finance
This social bond issuance aligns with Standard Chartered’s commitment to sustainable finance. The proceeds will facilitate job creation, financial accessibility, and economic resilience by offering credit to underserved sectors. The funding will also help develop basic infrastructure, food security, and healthcare in regions where financial gaps hinder social progress.
India is one of the primary beneficiaries of this initiative, accounting for 57% of the bank’s social assets, followed by Malaysia (10%), Bangladesh (6%), Mainland China (5%), and Nepal (4%).
According to global estimates, USD 4.2 trillion in annual investments is needed to bridge financial gaps in emerging economies. Mobilizing private sector capital is key to long-term, inclusive prosperity, and this bond issuance reflects Standard Chartered’s proactive approach to sustainable investments.
A Strong Focus on Women Entrepreneurs and SMEs
One of the key objectives of this social bond is to empower women-led SMEs. Through its SC Women’s International Network (WIN) program, Standard Chartered has been working to enhance access to capital for female entrepreneurs.
Since its launch in India in 2022, SC WIN has expanded to six more markets, including Kenya, Malaysia, Vietnam, and Pakistan. The program provides:
- Tailored financial solutions catering to different business growth stages.
- Networking platforms connecting female entrepreneurs with mentors and investors.
- Training programs to enhance business scalability.
With this initiative, Standard Chartered aims to lend USD 1 billion to women-led SMEs in Asia and Africa by 2028.
Investing in Critical Infrastructure and Financial Inclusion
The social bond will also finance vital infrastructure projects that improve quality of life and economic conditions in emerging markets.
Key impact-driven projects from Standard Chartered’s Sustainable Finance Impact Report (2024) include:
1. Clean Water Infrastructure in Angola
- A EUR 22 million social loan, in partnership with UK Export Finance, funded a rural water supply project in Quiminha, Angola.
- The initiative rehabilitated the Quiminha Dam and constructed water storage and distribution infrastructure.
- The project will provide clean water access to approximately 100,000 people in underserved rural communities.
2. SME Financing in Uzbekistan
- A EUR 114 million social financing package, structured in collaboration with MIGA (Multilateral Investment Guarantee Agency) of the World Bank Group, was granted to the National Bank for Foreign Economic Activity of Uzbekistan.
- The loan provides financial support to SMEs in agribusiness, wholesale, and manufacturing, bolstering economic resilience.
A Commitment to Sustainable Finance
The issuance of this social bond reflects Standard Chartered’s broader mission to drive responsible banking and sustainable growth. The bank’s Sustainable Finance asset pool currently includes USD 5.5 billion in social assets, 99% of which are in Asia, Africa, and the Middle East.
Leadership Perspectives on the Social Bond
Diego De Giorgi, Group Chief Financial Officer at Standard Chartered, emphasized the significance of the bond issuance, stating:
“Our first social issuance is a major milestone, showcasing Standard Chartered’s ability to raise capital in major financial hubs and deploy it where it’s needed most. We are uniquely positioned at the center of global financial flows, ensuring sustainable finance reaches emerging markets to drive growth and impact.”
Marisa Drew, Chief Sustainability Officer at Standard Chartered, echoed the bank’s commitment, adding:
“This Social Bond issuance is a testament to our dedication to people, communities, and businesses. It allows us to mobilize capital at scale, ensuring long-term, inclusive growth across our key markets.”
A Growing Sustainable Finance Portfolio
Standard Chartered continues to expand its Sustainable Finance asset portfolio, which stood at USD 23.3 billion in September 2024, with 78% of assets in Asia, Africa, and the Middle East.
With this first-ever Social Bond, the bank is demonstrating how finance can be a powerful tool for social impact, addressing pressing issues such as financial inclusion, gender equality, and sustainable development.
(India CSR)
