(London/ Madrid) – HSBC announced today that it has executed its first-ever interest rate swap (IRS) for a client that incorporates an environmental, social and governance (ESG) trigger.
Agreeing the three-year IRS with HSBC, Siemens Gamesa Renewable Energy converted a EUR250m tranche of a floating-rate syndicated loan, which it had arranged in December 2019, into fixed-rate funding.
The IRS locks in Siemens Gamesa’s cost of funding – a key goal for the company – and reduces its exposures to fluctuations in Euribor.
Significantly, the transaction also includes an ESG trigger that provides an added incentive for Siemens Gamesa to keep improving its ESG rating over the life of the swap. The trigger will see either HSBC or Siemens Gamesa donate annually to the projects of non-profit organisations during that time.
Patrick Kondarjian, Head of EMEA Wealth Sales and Global ESG Product, HSBC, said: “We are pleased that HSBC was able to deliver this bespoke solution to Siemens Gamesa, combining our Rates capabilities with our ESG credentials. HSBC’s offering in this space makes us a partner of choice for our corporate and institutional clients who are increasingly interested in ESG topics, policies, and funding.”
HSBC is committed to providing and facilitating USD100bn of sustainable finance and investment by 2025, having already delivered USD52.4bn of this commitment in 2019.
+44(0)203 359 3735/ +44(0)7384 794644
HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. HSBC serves customers worldwide from offices in 64 countries and territories in our geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of USD2,715bn at 31 December 2019, HSBC is one of the world’s largest banking and financial services organisations.