HSBC launches new ‘green finance’ for businesses

HSBC UK has launched three new green finance options to help British businesses become more sustainable and improve their green credentials.

The new range is available for small to medium enterprises (SME) as well as large corporates and includes a Green Loan, a UK industry first Green Revolving Credit Facility (RCF) and a Green Hire Purchase, lease and asset loan.

HSBC launched a pilot of the Green Loan last year to larger corporates but has now opened it up to SMEs and mid-market companies wanting to secure loans for sustainable activities.

The minimum Green Loan starts at £300,000, enabling a broad range of companies to access finance to support sustainability projects.

The UK industry first Green RCF enables companies to access to cash and is available for a minimum loan value of £1m.

The Green Hire Purchase, Lease and Asset loan is to help businesses finance green assets through hire purchase, lease and asset loan.

Rob King, HSBC UK commercial banking head of sustainable Finance said: ‘We have seen strong demand from businesses since launching the Green Loan pilot last year so we are confident this suite of green finance products will support our customers to meet their sustainability agendas.

‘Our offering allows our customers to showcase their green credentials to stakeholders by demonstrating that a portion of their funding is ring-fenced for genuine environmental and sustainability activities.

‘Many stakeholders are now considering a company’s green credentials when making decisions about whether to work with, work for or invest in that company.’

HSBC UK says they have already provided green loans valuing £600m to UK businesses as part of the pilot, including a funding package for UK property developer Argent to support the development of Facebook’s new UK headquarters in London, which is claimed to be one of the world’s greenest buildings.

Photo Credit – Elliott Brown