**Meta:** Standard Chartered raises €1 billion for sustainable development projects, focusing on SMEs and essential services.
**Content:**
### Standard Chartered Raises €1 Billion for Sustainable Development
**Who:** Standard Chartered Plc
**What:** Issued its first social bond
**When:** Recently
**Where:** Global, with a significant focus on India
**Why:** To support sustainable development projects, particularly in emerging markets
Standard Chartered Plc has successfully raised one billion euros (approximately ₹9,400 crore) through its inaugural social bond aimed at financing sustainable development initiatives across its emerging market presence, including India. This eight-year bond is designed to primarily support lending to small and medium-sized enterprises (SMEs), ensuring access to finance, job creation, and the empowerment of women-owned SMEs. Notably, over 50% of the funds raised will be directed towards sustainable projects in India.
### Financing Essential Services and Infrastructure
The proceeds from this bond will also be utilized to enhance access to essential services such as healthcare and education. Additionally, it will facilitate investments in affordable basic infrastructure and food security, aligning with the objectives outlined in the bank’s Sustainability Bond Framework.
Diego De Giorgi, Group Chief Financial Officer at Standard Chartered, remarked, “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.”
### Key Markets for Social Assets
The top five countries where Standard Chartered’s social assets are concentrated include:
– India (57%)
– Malaysia (10%)
– Bangladesh (6%)
– Mainland China (5%)
– Nepal (4%)
The bank highlighted that approximately $4.2 trillion in annual investment is required across emerging markets to promote sustainable development and resilience in businesses and communities. Bridging this investment gap necessitates mobilizing private sector capital to channel finance towards critical outcomes for inclusive, long-term prosperity.
The funds raised from this inaugural social issuance will reference Standard Chartered’s Sustainable Finance asset pool, which comprises $5.5 billion in social assets, with 99% located in Asia, Africa, and the Middle East. This strategic allocation ensures that the capital raised will support markets with the highest demand for financing.
### Conclusion
This first social bond issuance underscores Standard Chartered’s commitment to supporting people, communities, and businesses. How do you think such initiatives can further enhance sustainable development in emerging markets?
**FAQs:**
**Q: What is the purpose of Standard Chartered’s social bond?**
A: The social bond aims to finance sustainable development projects, particularly supporting SMEs and essential services like healthcare and education.
