India Business Journal - Standard Chartered mops up 1 bn euros via social bond to help SMEs

MONEY

Standard Chartered mops up 1 bn euros via social bond to help SMEs

IBJ Bureau
Mar 16, 2025

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

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

Of the total amount, 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 has 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).

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, the bank has 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 has added.