DUBAI –Saudi British Bank (SABB) has become the first Saudi Arabian institution to make a green deposit. The funds, deposited with HSBC in the UAE, will be used solely to finance green initiatives.
It is the first green deposit issued in United Arab Emirates dirham (AED) and one of the first green deposits made by a financial institution in the Middle East.
The deal comes just a few months after HSBC launched green deposits in the UAE and interest in the sustainable financing option has been immediate, with this being the third green deposit issued so far.
Antoine Maurel, Head of Markets & Securities Services, CEEMEA, HSBC, said: “This deal between SABB and HSBC is a fantastic example of the strong relationship and collaboration between the two banks. We’re very happy that SABB has decided to utilise this product, and it was a pleasure to support them throughout the process. We are committed to being the leading bank for ESG solutions in the Middle East and continue to support our clients across the region in establishing their ESG and sustainable frameworks.”
Philippe Robert, Regional Head of FI Sales and International Markets, Global Liquidity and Cash Management, HSBC Middle East, North Africa and Turkey, said: “Clients across the region are demanding greater access to green finance and innovative products to meet their growing ambitions to manage capital in a more sustainable way. Green deposits are already proving very popular as businesses know that their funds are going towards supporting green projects.”
HSBC is the first bank in the UAE to offer green deposits, which allows corporate and institutional companies to invest surplus cash funds in sustainable projects, knowing that it will be used to finance green initiatives.
Mohammed Al-Shaikh, Deputy Managing Director - Treasury at SABB, said: “It gives us great pleasure to announce the Kingdom’s first green deposit which is a true testament of the pivotal role ESG plays in our merged bank’s newly announced strategy. Our partnership with HSBC puts us in a unique position to expand our offering continuously and provide best in class solutions for our customers and the Kingdom as a whole.”
Clients of HSBC’s green deposits receive a portfolio-level view of how their funds have been deployed to support sustainable projects, with the ability to manage their green account as simply as a regular deposit account.
Funds deposited will be used by HSBC to provide financing for green projects and initiatives such as renewable energy, energy efficiency, green buildings and biodiversity conservation.
In the UAE, HSBC is at the forefront of financing the transition to a low carbon economy. It offers a suite of green products for both the corporate and retail segments, and earlier this year it issued the UAE’s first green mortgages. The bank has also formed a dedicated Sustainable and Transition Finance Team for the Middle East, to help economies across the region achieve their climate targets.
© Press Release 2021