Standard Chartered Launches Inaugural Euro 1bn Social Bond to Aid Women Owned Enterprise

• Standard Chartered issues its inaugural social bond
• €1bn bond aims at supporting sustainable development and promote equal access to finance
• Low-income countries across emerging markets to receive financial aid through program

Standard Chartered has issued its first social bond, raising €1bn to finance sustainable development in low-income countries in its emerging markets portfolio. Social bonds are used to finance new and existing projects that have a positive social impact.

The £1bn bond has an eight-year term, with no ability for the issuer to call or redeem it for the first seven years. The bond will primarily be used to finance lending to small and medium-sized businesses (SMEs), with a special emphasis on women-owned enterprises, to promote equal access to finance.

The World Bank database in 2021 shows that around 2.4 billion women around the world lack equal economic rights to men, with the financial gap for women entrepreneurs placing an estimate of $1.7 trillion.

The proceeds of the bond will be utilized for improving access to basic services such as healthcare and education, providing employment opportunities, and investing in affordable infrastructure and food security in accordance with the Bank's Sustainability Bond Framework.

The money raised also receives backing from Standard Chartered's Sustainable Finance asset pool with a value of $5.5 billion of social assets. Nearly 99 percent of them are located in Asia, the Middle East, and Africa, areas where a huge need is being felt for sustainable finance.

The major five nations containing Standard Chartered's social assets are India at 57 percent, Malaysia at 10 percent, Bangladesh at 6 percent, Mainland China at 5 percent, and Nepal at 4 percent. The UN Department of Economic and Social Affairs (DESA) put the figure at approximately $4.2 trillion in annual investments needed to fuel sustainable development.

Standard Chartered's group chief financial officer, Diego De Giorgi, said "As a bank at the center of capital, trade, and investment flows in developed and developing economies, this issuance illustrates how we are offering financial solutions to enable long-term growth in our markets."

The value of creating positive social impact

During October, Mars UK announced that it has started to measure its social value contribution to the UK economy, including community activities, local up skilling, and sustainable business practices. Mars UK is working in partnership with the Social Value Portal to monitor progress. In its 2023 Social Value Report, the company reported over £88 million of social value in its UK operations, or around £23,000 per employee.

Equally last week, Sodexo, the market leading Catering and FM services business, released its dedication to ending issues that confront society including hunger and inclusion through the following five years. Part of its social impact vision by 2030, Sodexo aims at increasing the diversification of its supply base to pay more than £1 billion with small and diverse suppliers through the year 2030 while aiding partners within its supply chains in lessening greenhouse gases

Meet sustainable finance leaders at edie 25

If you're a driver or at the centre of your company's social sustainability or sustainable finance initiative, edie 25 is an event that you just have to attend. It's the perfect opportunity to learn, get inspired, and network with the most influential decision-makers in the sector. Edie 25 is happening in central London on 26-27 March 2025, and tickets are now available to buy!

Spreading over two floors with several rooms, the event will have two full days of keynote speeches, action-packed panels, best-practice case studies, and interactive workshops hosted by the audience.

Speakers confirmed are:
Ed Fells, Chief Financial Officer, Chivas Brothers
Jeanette Wong, Chief Financial Officer, London Marathon Events
Rishi Madlani, Board Member, UK Sustainable Investment and Finance Association