Standard Chartered's Innovative Sustainable Financing Option

• Standard Chartered expands sustainable financing options for businesses.
• Incentives and special rates offered to businesses promoting sustainable activities.

Standard Chartered, a British multinational bank, has introduced a new financing option called sustainable finance variants of Borrowing Base Trade Loan (BBTL).

This is available in the United States, UK, UAE, South Africa, Singapore and Hong Kong and will be expanded to more in the coming years.

What is BBTL?

BBTL is particularly suitable for businesses dealing in commodities like raw materials. These businesses can obtain loans using their existing assets, like cash, inventory, or customer payments. This helps them manage their day-to-day finances more efficiently. The loan amount is available depending on the number of assets they have and can be adjusted based on what a business requires at a time. It also makes it easier by consolidating multiple transactions under a loan.

The new version of BBTL has a sustainability element and incorporates environmental, social, and governance (ESG) criteria, especially directed toward businesses involved in sustainable activities, such as supplying materials to clean energy projects or other green initiatives.

READ MORE: Investors Buy ESG Bonds as Trump Backs Away from Green

Businesses that aim to meet sustainability goals, like reducing carbon emissions, using more renewable energy, and promoting diversity in the workplace, can receive incentives or loans at better rates.

Standard Chartered is expanding its line of sustainable finance products and has already rolled out a sustainable trade loan for Financial Institutions and an ESG-Linked Cash Account.

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Source: Standard Chartered