HSBC USA Expands Sustainable Development Lending Offering for Commercial Bank Clients

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NEW YORK–() – HSBC Bank USA, NA, (HSBC), part of the HSBC Group, today announced that it is offering Sustainable Development Loans (SLLs) that will enable US companies to link their borrowing to activities that support more sustainable and sustainable operations. and a prosperous world.

HSBC SLLs are available in a variety of corporate loans and credit lines, the terms of which are linked to predefined sustainability targets (SPT). Achieving SPT results in lower interest expense, effectively providing financial incentives for the borrower’s sustainability strategy.

In partnership with clients, HSBC structures the SLL according to Sustainable Loan Principleswhich are voluntary global guidelines set by independent loan market associations that SPTs should be meaningful and ambitious for the business, and their results should be regularly reviewed and reported.

“We want to provide loans and access to credit in a way that meets the needs of American businesses, from financing growth and investment to supporting their sustainability strategy,” said Julie Bennett, head of the US ESG and Strategic Solutions Group at HSBC Global Banking. “SLL is another example of how we are integrating resilience into our products and services, including access to capital markets, lending, banking and advisory services.”

While tailored for a specific company, examples of SPTs include reducing greenhouse gas emissions, using renewable energy sources, disposing of waste from landfills and reducing water use, as well as social and diversity indicators such as increased workforce diversity.

Showcasing innovation at SLL, Mercon Coffee Group in partnership with HSBC on the first revolving credit line focused on coffee only. Mercon is committed to making its supply chain as sustainable as possible – from conserving water and forests and managing a farm to implementing social best practices on its growers’ coffee plantations – and this syndicated facility helps fund Mercon’s sustainability goals through its LIFT sustainable production program. … The cost of interest is tied to Mercon’s performance in relation to certain environmental and social SPTs, and HSBC will lower the interest rate on the loan when Mercon complies with the SPT.

“An estimated 125 million people worldwide depend on coffee for their livelihoods, and 25 million smallholders produce 80 percent of the world’s coffee,” said Tony Nanez, head of commodity finance at HSBC Global Trade and Receivables Finance in North America. “HSBC is proud to support Mercon in its mission to support these farmers through our participation in their sustainable financing syndicated fund.”

HSBC will host LinkedIn live streaming, How to Promote Your ESG Strategy: Coffee and Cargo Lessons, Thursday, June 17 at 12:00 pm ET. Panelists include HSBC clients Juan Pablo Ibarra, COO of Mercon Coffee Corp., and Matt Boris, Treasurer and Head of Capital Markets at Atlas Corp (parent company of Seaspan), who will share their overarching ESG strategies and how they create new paths in sustainable financing. The panel will be moderated by Kelly Fisher, Head of Corporate Resilience at HSBC USA.

“By linking environmental and social sustainability goals to interest payments on loans and credit lines, we are mobilizing funds and supporting clients like Mercon to achieve their vision of sustainability,” said Kelly Fisher, head of corporate sustainability at HSBC in the United States. “The SLL offering is part of our commitment to not only play our part, but also lead the global transition to zero as a responsible banking provider.”

For more information on sustainable loan and service opportunities to support the needs of American businesses, visit www.business.us.hsbc.com/sustainability

HSBC Group announced a net zero strategy in October 2020 to align its financing with the Paris Agreement target of net zero by 2050 across all sectors of its client portfolio. At the heart of the strategy is a commitment to supporting customers on their path to sustainability. HSBC expects to provide $ 750 to $ 1 trillion in funding and investment to ensure a net zero transition for its customers between 2020 and 2030.

HSBC also launched Planet business plan, a global campaign to raise awareness of the importance of a clean zero economy and showcase how HSBC can provide businesses with the understanding, capabilities and resources to help them make the transition to a low carbon economy.

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About HSBC

HSBC USA

HSBC Bank USA, National Association (HSBC Bank USA, NA) serves clients through retail banking and wealth management, commercial banking, private banking, and global banking and market segments. It has branches in: California; Washington; Florida; Maryland; New Jersey; New York; Pennsylvania; Virginia; and Washington. HSBC Bank USA, NA is the parent subsidiary of HSBC USA Inc., a 100% subsidiary of HSBC North America Holdings Inc. In the US, deposit products are offered by HSBC Bank USA, NA, an FDIC member, investment and brokerage services. provided through HSBC Securities (USA) Inc. (a member of NYSE / FINRA / SIPC) and insurance products are provided through HSBC (USA) Inc. HSBC Bank USA, NA, is Equal Housing Lender

HSBC Commercial Banking

For over 150 years, we have been striving to grow by opening up opportunities for customers. Today HSBC Commercial Banking serves over 1.3 million customers in 53 markets, from small businesses focused primarily on their domestic markets to corporations operating overseas. Whether it’s working capital, term loans, trade finance or payment and cash management solutions, we provide the tools and knowledge businesses need to thrive. As the cornerstone of the HSBC Group, we provide businesses with access to a geographic network that covers over 90% of global trade and capital flows.

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