Key Impact Points:
- Empowering Decarbonization: The new sustainable Borrowing Base Trade Loan (BBTL) helps commodity sector clients transition to greener business practices.
- Global Reach: The solution is available in key markets including the US, UK, UAE, South Africa, Singapore, and Hong Kong.
- ESG Integration: The sustainable finance variants integrate ESG criteria, offering benefits such as lower pricing for companies hitting sustainability targets.
Standard Chartered has launched a sustainable finance variant of its Borrowing Base Trade Loan (BBTL), reinforcing its commitment to decarbonizing the commodity sector. The BBTL is a secured revolving credit facility tailored to meet the specific needs of businesses, allowing them to borrow against a pool of collateral like cash, inventory, or receivables. It provides clients with flexible financing while consolidating transactions under a single loan.
This new variant, available in markets including the US, UK, UAE, South Africa, Singapore, and Hong Kong, integrates environmental, social, and governance (ESG) criteria into the financing process. By doing so, it allows companies to access loans for activities aligned with sustainability goals.
“By integrating sustainability variants into our BBTL solution, we’re helping to empower our UAE clients to adopt more sustainable practices. This aligns with our commitment to offering finance to help facilitate our clients’ transition towards more sustainable business practices,” said Syed Khurrum Zaeem, Head of Transaction Banking, Africa & Middle East, Standard Chartered.
Incentives for Sustainability
The new BBTL variants also offer preferential pricing for companies that demonstrate a commitment to sustainability-related key performance indicators (KPIs), such as reducing carbon emissions or increasing the use of renewable energy. These sustainability-linked features align with Standard Chartered’s Green and Sustainable Product Framework, reinforcing their efforts to help clients transition to greener operations.
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Standard Chartered continues to expand its sustainable finance offerings, recently launching other products like a sustainable trade loan for financial institutions and an ESG-linked cash account, further supporting global efforts to drive sustainable finance.
ESG Criteria in Action
These new variants prioritize lending to activities that advance sustainability, such as financing critical metals essential for the energy transition. Businesses benefiting from these loans will have to meet specific ESG standards, ensuring that sustainability goals are central to their financial operations.