Standard Chartered Bank has successfully raised €1 billion (approximately ₹9,400 crore) through the issuance of its first social bond, aimed at funding sustainable development projects across its emerging market footprint, including India. The 8-year bond is a significant step toward fostering financial inclusion, economic empowerment, and infrastructure development.
Focus on Small and Medium Enterprises (SMEs)
A major portion of the funds raised through this bond will be directed toward lending to small and medium-sized enterprises (SMEs), ensuring access to crucial financial resources. This initiative is expected to support job creation, business expansion, and economic empowerment, particularly for women-owned SMEs. By providing accessible financing, Standard Chartered aims to reduce economic disparities and drive inclusive growth.
Significant Allocation for India
India is expected to receive approximately 50% of the total proceeds from the bond issuance, reinforcing its role as a key beneficiary of Standard Chartered’s social financing initiatives. The investment will be directed towards:
- Sustainable infrastructure development
- Affordable housing projects
- Access to essential services like healthcare and education
- Food security initiatives
The bank’s Sustainability Bond Framework outlines these social activities as essential components of the investment strategy.
Top Five Beneficiary Countries
According to Standard Chartered, the bank’s social assets are primarily located in the following emerging markets:
- India: 57%
- Malaysia: 10%
- Bangladesh: 6%
- Mainland China: 5%
- Nepal: 4%
Addressing the $4.2 Trillion Annual Investment Gap
Standard Chartered emphasized that emerging markets require approximately $4.2 trillion annually to support sustainable development, business resilience, and long-term economic growth. The bank highlighted the urgent need for private sector capital to bridge this gap, ensuring financing is channeled toward inclusive and sustainable economic outcomes.
Driving Private Sector Investment for Social Impact
By launching its first social bond, Standard Chartered is setting a precedent for mobilizing private capital into socially responsible projects. The initiative aligns with global sustainability goals, demonstrating the bank’s commitment to fostering long-term prosperity in developing economies.
The successful issuance of this €1 billion social bond marks a significant milestone in advancing financial inclusion, infrastructure development, and economic empowerment across Standard Chartered’s global footprint, particularly in India and other key emerging markets.
