HSBC issues first green trade finance facility in MENA

British multinational investment bank HSBC has issued the first green trade finance facility in the Middle East and North Africa (MENA) region for the UAE-based project services company Lamprell.

The $48 million fund raised from the issuance will be used to support the implementation of Lamprell’s fabrication work on the Seagreen Offshore Wind Farm project off the coast of Scotland.

In recent years, regional governments and institutions have issued green bonds, which are essentially any funding that is arranged to ensure the best environmental outcomes. HSBC was the sole arranger for the facility, which is also the first green guarantee in the region.

“This transaction demonstrates the commercial viability of green finance in the Middle East for issuers beyond sovereigns, financial institutions and the largest multinational corporations. Sustainable growth is more important than ever before for businesses that want to build back better from the COVID-19 pandemic and HSBC is proud to be leading the development of the green finance market in the Middle East.”

Last June Lamprell became a subcontractor on the Seagreen Offshore Wind Farm project, located near the Angus coastline in Scotland. The project involves the construction and installation of 114 wind turbine generators and the UAE-based firm was mandated to fabricate 30 of the 114 jackets and suction base foundations for the generators.

Over the years, HSBC has made significant contributions to sustainable finance globally, with its product covering both wholesale and retail customers. The bank’s MENAT network has led ground-breaking sustainable finance transactions for the region.

Last year, HSBC announced a plan to prioritize $1 trillion in financing and investment that supports the transition to a net-zero global economy, following the Paris Agreement. HSBC also stated its own aim to be net-zero in its operations and supply chain by 2030.