Standard Chartered has introduced a new sustainable finance version of its Borrowing Base Trade Loan (BBTL) solution, a financial facility aimed at helping businesses, particularly in the commodity sector, manage their working capital more efficiently. This sustainable variant will be available in key markets including the United States, UK, UAE, South Africa, Singapore, and Hong Kong, with further expansions planned for the near future.
The Borrowing Base Trade Loan is a revolving credit facility designed to meet the specific financing needs of businesses. This solution allows firms to secure financing against various collateral types, such as cash, inventory, or receivables, enabling them to better manage their working capital. The amount businesses can borrow depends on the value of the underlying collateral, offering flexibility and efficiency. By consolidating multiple transactions under a single loan, businesses can streamline their trade financing while leveraging existing assets for secure funding.
Standard Chartered’s latest initiative enhances the traditional BBTL structure by introducing sustainable finance variants, incorporating environmental, social, and governance (ESG) criteria into the borrowing process. This will allow companies to finance eligible materials supporting the global energy transition or activities aligned with the bank’s Green and Sustainable Product Framework (GSPF).
Empowering Sustainable Practices
Commenting on this development, Syed Khurrum Zaeem, Head of Transaction Banking for Africa & Middle East at Standard Chartered, emphasised the bank’s commitment to supporting sustainable business transitions.
He stated: “By integrating sustainability variants into our BBTL solution, we’re helping to empower our UAE 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.”
These sustainable variants aim to drive change by offering businesses differential pricing if they can meet ambitious sustainability-related KPIs (Key Performance Indicators). This could include reducing carbon emissions, increasing renewable energy use, or improving diversity within company leadership.
Supporting Global Energy Transition
The sustainable finance options under the BBTL framework focus on materials critical to the energy transition, such as financing projects that align with global efforts to move toward a low-carbon economy. Standard Chartered is committed to offering financing that promotes the trade of environmentally and socially responsible materials, encouraging its clients to adopt sustainable practices.
In addition to this new launch, Standard Chartered has been expanding its suite of sustainable finance products. The bank recently introduced a Sustainable Trade Loan for Financial Institutions and an ESG-Linked Cash Account, further solidifying its leadership in offering green finance solutions.
As the demand for sustainable finance grows globally, Standard Chartered continues to innovate its product offering, helping businesses integrate ESG principles into their operations while securing the necessary capital to grow and thrive.