Standard Chartered announced the launch of the sustainable finance variants of its Borrowing Base Trade Loans (BBTL).
The solutions will be available in key markets, including the United States, the United Kingdom, the UAE, South Africa, Singapore, and Hong Kong.
The Borrowing Base Trade Loan is a secured revolving credit facility designed to meet the financial needs of enterprises, especially those in the commodities industry.
Using collateral like cash, inventory, or receivables gives businesses the freedom to manage their working capital.
The loan application process for sustainable finance versions considers environmental, social, and governance (ESG) factors.
It recognizes establishments facilitating the trade of eligible resources, including vital metals that power the energy shift.
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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 loan amount is adjustable and linked directly to the borrowing base allowing clients to aggregate several transactions under a single credit facility, simplifying trade finance while utilizing their existing assets.
These products, which center on funding that supports sustainable operations, are a part of Standard Chartered’s Green and Sustainable Product Framework (GSPF).
A noteworthy characteristic of the sustainable BBTL variations is the differential pricing, which offers businesses favourable rates for sustainability.
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These preferred rates are available to businesses that satisfy key performance indicators (KPIs), such as lowering carbon emissions, using more renewable energy, and diversifying the management team.
With the introduction of an ESG-Linked Cash Account and a sustainable trade loan for financial institutions, Standard Chartered has increased the range of products it offers for sustainable finance.