HSBC India unveils 'Green Deposit Programme' to finance eco-friendly initiatives

Banker HSBC India on Thursday launched its 'Green Deposit Programme' for corporate clients to finance green initiatives.

According to the bank, deposits under this programme will finance green initiatives such as renewable energy, clean transportation, pollution prevention and control, green building, sustainable water, waste water management and others, providing a simple way for companies to support environmentally-beneficial projects.

"The 'Green Deposit' is available in INR as 'Term Deposit'. This innovative and unique fixed tenure deposit will go towards financing eligible businesses and projects that promote the transition to a low-carbon, climate resilient and sustainable economy," the bank said in a statement.

"As a product, 'Green Deposit' offers stable principal, pre-agreed return and similar levels of principal protection as a bank deposit."

As per the statement, HSBC will provide customers with a quarterly report containing portfolio-level information regarding the use of the deposited funds.

"Corporates looking for inclusion of a sustainability agenda into their treasury activities or those that have limited opportunities for investment in environmentally beneficial projects will find this product particularly relevant," the statement said.

"By leveraging a deep understanding of sustainable finance and international green finance benchmarks, HSBC India has already established its capability and expertise in 'Green Loans'."