HSBC India on Thursday launched a “green deposit programme”, exclusively for corporate clients, under which deposits will be used by the bank to finance green initiatives and environment friendly projects. The deposit scheme will come in the form of a term deposit, which typically attracts higher interests as compared to savings deposits.
In a statement, the bank said that deposits under this scheme will go towards financing eligible businesses and projects that promote the transition to a low-carbon, climate resilient and sustainable economy.
This deposit scheme of the bank will offer its corporate clients stable and pre-agreed returns, and offer the same protection as a normal bank deposit does. Furthermore, clients will get quarterly reports containing portfolio-level information regarding the use of the deposited funds.
“Corporates looking for inclusion of a sustainability agenda into their treasury activities or those that have limited opportunities for investment in environmentally beneficial projects will find this product particularly relevant”, the bank said in a statement.
According to Hitendra Dave, head-Global Banking and Markets, HSBC India, this scheme will help corporates participate in the sustainability agenda with the safety and assurance of a bank deposit. “It is equally suitable for corporates who have either a mature sustainability agenda or are looking to start on this path”, Dave added.
HSBC has extended green loans to support environment friendly projects in the past across multiple sectors. In India, it has extended credit to a 250 MW wind power project at Kutch, Gujarat, India.