Standard Charter raises 1 billion euros through the first social bond to support “low-income countries”, India orders 57%

Standard Chartered PLC has raised a billion euros, about ₹$94 billion, issuing the first social bond to support sustainable development projects in the emerging market footprint of global banks, including India. India is one of the main markets for capital deployment in bond issuance.

The eight-year bond will primarily promote loans to small and medium-sized enterprises (small and medium-sized enterprises), ensure access to finance, help create jobs, and empower and nurture women-owned SMEs. More than 50% of the funds raised will be allocated to India for sustainable projects.

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Standard Chartered said the proceeds will also fund access to essential services including health care and education and promote investment in affordable basic infrastructure and food security, in line with social activities set out in the bank’s sustainable bond framework.

“Our first social issuance is an important milestone for the bank and demonstrates the unique ability of Standard Charter to raise funds in the world’s largest financial centers and deploy it across borders to enter markets with the need for sustainable funding, most in need of sustainable funding. As a bank located at the heart of capital, trade and investment flows in developed and developing economies, the issuance highlights how banks provide financial solutions to support the lasting growth of our market.”

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The top five countries where standard franchised social assets are located include India (57%), Malaysia (10%), Bangladesh (6%), mainland China (5%) and Nepal (4%).

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“Today, approximately $42 trillion in annual investment is needed in emerging markets to promote sustainable development, build resilience between businesses and communities, and promote lasting growth,” the bank said.

“Clamping this gap requires mobilizing private sector capital into these markets, thereby shifting finance to outcomes that are critical to inclusive, long-term prosperity,” added the International Cross-Border Bank.

The proceeds raised from the inaugural social issuance will refer to the Standard Charter’s pool of sustainable financial assets, which includes $5.5 billion in social assets – 99% of which are located in Asia, Africa and the Middle East. “This ensures that the capital raised through this issuance will support the market with the largest financial demand,” the bank said.

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Marisa Drew, Chief Sustainability Officer at Standard Chartered Chartered, said: “This social bond issuance emphasizes our commitment to people, communities and businesses and provides a unique opportunity to grow and develop capital scales on a large scale towards inclusive growth and development of our market.”

Marisa Drew added: “We have 99% of our social assets located in Asia, Africa and the Middle East are different factors for us as an organization. It enables us to provide our clients with dynamic sustainability propositions that together drive our footprint to promote impact.”