Standard Chartered's Landmark Social Bond Aims to Empower SMEs

Standard Chartered has launched its first social bond, raising 1 billion euros to support sustainable development projects, primarily aiding SMEs and women-owned businesses in emerging markets, including India. The funds will also enhance healthcare, education, and infrastructure services, fostering long-term economic growth and resilience.

In a significant move towards fostering sustainable development, Standard Chartered has raised 1 billion euros through its inaugural social bond issuance. The funds are earmarked to bolster a range of sustainable development projects with a key focus on emerging markets, particularly India.

This 8-year bond is designed to facilitate lending primarily to small and medium-sized enterprises (SMEs), with an emphasis on empowering women-owned businesses. In a statement released on Friday, StanChart highlighted its goal of ensuring access to finance, thereby creating jobs and nurturing business growth in these vital sectors.

Approximately 50% of the bond's allocation is dedicated to sustainable initiatives in India. The proceeds are intended to finance essential services, such as healthcare and education, in addition to investing in affordable infrastructure and food security. This initiative underscores the need for an estimated USD 4.2 trillion in annual investments across emerging markets to achieve sustainable development and inclusive prosperity.