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 the United Arab Emirates dirham (AED) and one of the first green deposits made by a Middle Eastern financial institution. The deal comes just a few months after HSBC launched green deposits in the UAE, and interest in the sustainable financing option has been raising, with this being the third green deposit issued so far.
HSBC is the first bank in the UAE to offer green deposits, which allow companies and organizations to invest surplus cash funds in sustainable projects with the assurance that the proceeds would be utilized to fund green activities.
The clients of HSBC’s green deposits get a portfolio-level view of how their fund is being used to support sustainable projects, and they can manage their green account just like a regular deposit account. HSBC will use the funds deposited to fund green projects and initiatives such as renewable energy, energy efficiency, green buildings, and biodiversity conservation.
“It is a great pleasure to announce the Kingdom’s first green deposit which strengthens a pivotal role ESG plays in our merged bank’s new strategy. Our partnership with HSBC helps us to expand our offering continuously and provide best in class solutions for our customers and the Kingdom as a whole.”
HSBC is at the forefront of financing the transition to a low-carbon economy in the UAE. It offers a range of green solutions for both corporate and retail clients, and it was the first in the Emirates to issue green mortgages earlier this year. The bank has also established a Middle East Sustainable and Transition Finance Team to assist economies across the region achieve their climate targets.
Mr. Antoine Maurel, Head of Markets & Securities Services, CEEMEA, HSBC, said, “This deal between SABB and HSBC is an example of the strong relationship between the two banks. We’re very happy that SABB has decided to utilize 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.”