Standard Chartered raises 1 bn euro via social bond, commits 50% for India

The 8-year bond will primarily facilitate lending to small and medium sized enterprises, ensuring access to finance

Standard Chartered has raised 1 billion euro (about Rs 9,400 crore) through issuance of the first social bond which will support sustainable development projects across the bank's emerging market footprint, including India.

The 8-year bond will primarily facilitate lending to small and medium sized enterprises (SMEs), ensuring access to finance, helping create jobs and empowering and nurturing women-owned SMEs, StanChart said in a statement on Friday.

Of the total, about 50 per cent would be allocated for India for sustainable projects.

Proceeds will also finance access to essential services including healthcare and education, and will facilitate investment into affordable basic infrastructure and food security, in line with the social activities set out in the bank's Sustainability Bond Framework, it said.

The top five countries where StanChart's social assets are located include India (57 per cent), Malaysia (10 per cent), Bangladesh (6 per cent), Mainland China (5 per cent), and Nepal (4 per cent).

Today, around $4.2 trillion in annual investment is needed across emerging markets to facilitate sustainable development, build resilience across businesses and communities, and facilitate enduring growth, it said.

Bridging this gap requires the mobilisation of private sector capital into these markets, channelling finance towards outcomes that are critical to inclusive, long-term prosperity, it added.