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HSBC partners with BRAC to deliver BDT 6.12 Billion social loan in Bangladesh
We’ve arranged Bangladesh’s second Social Loan Principles (SLP) based financing in partnership with BRAC, one of the largest non-governmental development organisations in the world.
Under this agreement, a Social Loan deal signing ceremony took place in Dhaka today on 1 August 2022 through which BRAC will get BDT 612 crore facility from HSBC to implement social development projects.
The path-breaking deal will open up many untrodden avenues of socio-economic development of the country’s marginal communities.
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Social Loan supports projects/initiatives aimed at mitigating or addressing a specific social issue and/or seeking to achieve positive social outcomes. These include, but are not limited to, providing and/or promoting affordable basic infrastructure, access to essential services (such as health and healthcare), affordable housing, employment generation through the potential effect of SME financing and microfinance, food security, and socioeconomic advancement and empowerment.
We are delighted to be able to extend our support with the Social Loan financing for BRAC. This is part of our global sustainability commitment and I would also like to thank BRAC, the largest non-governmental development organisation in the world for partnering with us with an objective to ensure social support in the community.
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Social Loans are operated based on the SLP which was introduced last year (2021). The SLP was jointly published by the Asia Pacific Loan Market Association (APLMA), the Loan Market Association and the Loan Syndication and Trading Association. The SLP build on and refer to the existing Social Bond Principles administered by the International Capital Markets Association (ICMA). This SLP-based financing in Bangladesh aims to accelerate the achievements of United Nations Sustainable Development Goals (SDGs), working in areas of employment generation, poverty alleviation and supporting small businesses.
As part of our global sustainability ambition, we support environmentally and socially sustainable economic activities and businesses. This Social Loan financing for BRAC showcases our dedication and capability to support businesses in their ESG journey and reinforces our market leading position in sustainability.
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