Standard Chartered has launched sustainable finance variants of its Borrowing Base Trade Loans (BBTL) in six major markets: the United States, UK, UAE, South Africa, Singapore, and Hong Kong. These new offerings cater to the financing needs of businesses, especially in the commodity sector, by incorporating environmental, social, and governance (ESG) criteria to foster sustainable practices. Additional market launches are anticipated in the future.
The Borrowing Base Trade Loan (BBTL) is a secured revolving credit facility that allows businesses to secure funding against a diverse pool of collateral, such as cash, inventory, or receivables. This structure simplifies trade financing by consolidating multiple transactions into a single loan, making it easier for clients to access funding based on their borrowing base. The sustainable finance variants are designed to encourage businesses to integrate more responsible and sustainable practices.
Sofia Hammoucha, Global Head of Trade & Working Capital at Standard Chartered said, “By integrating sustainability variants into our BBTL solution, we’re helping to empower our 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.”
The new sustainable variants of BBTL recognise facilities that support the trade of eligible materials, such as critical metals for energy transition or activities included in Standard Chartered’s Green and Sustainable Product Framework (GSPF). These sustainability-linked loans offer differential pricing for businesses that achieve specific sustainability-related key performance indicators (KPIs), such as reducing carbon emissions, increasing the share of renewable energy, or improving diversity within their management teams.
This move follows Standard Chartered’s recent introduction of a sustainable trade loan for financial institutions and an ESG-linked cash account, reflecting the bank’s ongoing commitment to expanding its sustainable finance products.