HSBC inaugurates new climate-focused infrastructure finance unit
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Britain’s HSBC has established a new unit to capitalize on infrastructure and project finance opportunities related to the global transition to a lower-carbon economy. A senior banking executive informed Reuters that the unit will be led by a former UK politician.
HSBC Infrastructure Finance (HIF) aims to secure “a meaningful share” in key markets. It will integrate segments of the bank’s Global Banking Real Asset Finance team, including infrastructure finance, export finance, and portfolio management.
The new unit, led by former UK government minister Danny Alexander, signifies HSBC’s return to ‘Project Finance Advisory,’ an area with limited capability.
Read more: HSBC to partner with Google to finance climate tech firms
HSBC aims for HIF to expand the bank’s debt origination and distribution businesses and foster new public—and private-sector partnerships.
The move comes as HSBC and other banks increasingly look to align their operations with a corporate commitment to reach Net-Zero emissions by mid-century, forcing a gradual tightening of lending to high-polluting sectors.
Read more: HSBC unveils net zero transition plan: Pioneering steps towards sustainable banking
Greg Guyett, HSBC’s CEO of Global Banking & Markets, told Reuters, “HSBC has a leading presence in the regions where infrastructure financing and project finance advisory capabilities are critical to enabling a just transition to a low-carbon economy.”
The new unit will collaborate closely with HSBC’s CMB Infrastructure Finance team and will also oversee Pentagreen Capital, a sustainable infrastructure debt joint venture launched with Singapore investment firm Temasek.
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