Saudi British Bank makes kingdom’s first green deposit to finance sustainable initiatives

Saudi British Bank (SABB) has become the first Saudi Arabian institution to make a green deposit.

The funds have been deposited with HSBC in the UAE and will be used solely to finance green initiatives.

It is the first green deposit issued in UAE dirham and one of the first green deposits made by a financial institution in the Middle East, a statement said.

HSBC is the UAE’s first bank to offer green deposits, which allows corporate and institutional companies to invest surplus cash funds in sustainable projects.

Clients of HSBC’s green deposits receive a portfolio-level view of how their funds have been deployed. Customers can manage their green account as simply as a regular deposit account, the statement added.

Funds deposited will be used by HSBC to provide financing for green projects and initiatives such as renewable energy, energy efficiency, green buildings and biodiversity conservation.

The bank has also formed a sustainable and transition finance team for the Middle East, to help regional economies achieve their climate targets.

Antoine Maurel, head of markets and securities services, CEEMEA, HSBC, said: “This deal between SABB and HSBC is a fantastic example of the strong relationship and collaboration between the two banks. We are committed to being the leading bank for ESG solutions in the Middle East and continue to support our clients across the region in establishing their ESG and sustainable frameworks.”

“Clients across the region are demanding greater access to green finance and innovative products to meet their growing ambitions to manage capital in a more sustainable way,” adds Philippe Robert, regional head of FI sales and international markets, global liquidity and cash management, HSBC Middle East, North Africa and Turkey. “Green deposits are already proving very popular as businesses know that their funds are going towards supporting green projects.”

Last year, HSBC Bank and technology company Mastercard partnered to accelerate sustainable urban development worldwide.

Read: HSBC Bank, Mastercard partner to promote sustainable communities