The Hongkong and Shanghai Banking Corporation (HSBC) in Bangladesh has structured the country’s second Sustainability Linked Loan (SLL) for Bangladesh Steel Re-Rolling Mills Ltd. (BSRM) to drive the steel manufacturer’s sustainability agenda.
The Tk 250 crore working capital facilities will be linked to improvements in BSRM’s energy efficiency.The deal was launched on Monday through a virtual session attended by Mohammad Ahmed Ali, Executive Director, Bangladesh Bank (Chattogram) as chief guest, said a press release.
Alihussain Akberali, Chairman, BSRM, Jonathan Drew, Managing Director, Environmental, Social, and Corporate Governance (ESG) Solutions, HSBC; Md. Mahbub ur Rahman, Chief Executive Officer, HSBC Bangladesh, Kevin Green, Country Head of Wholesale Banking, HSBC Bangladesh, among others, were present on the occasion.
Md. Mahbub ur Rahman, CEO, HSBC Bangladesh, said HSBC recently announced an ambitious plan to prioritise financing and investment that supports the transition to a net zero carbon emission in order to build a thriving, resilient future for society and businesses.
“We have both the scale and global reach in guiding businesses through this transition to a low carbon economy and we are happy to play our part with BSRM in support of their own sustainability goals”, Mahbub ur Rahman added.
Speaking at the landmark signing, Alihussain Akberali, Chairman, BSRM said, “Like HSBC, we have always endeavoured to bring positive change to the industry and wider society. I am delighted to partner with HSBC Bangladesh to join this innovative and future-ready solution.” Sustainability Linked Loans aim to improve the borrower’s sustainability profile by aligning loan terms to the borrower’s performance against pre-determined Sustainability Performance Target (SPT) benchmarks.