AFRICA – Standard Chartered, a financial service provider, has partnered with one of the world’s largest private markets investment managers to complete the first ever sustainable use of proceeds subscription finance facility.
Funds will be drawn by the manager and will be used to bridge investments into mid- to large cap companies that align with the United Nations Sustainable Development Goals (SDGs), including combating climate change, supporting financial inclusion, and tackling the lack of universal access to health and education.
All projects funded by the facility will have to meet stringent criteria which include measuring the impact of the project on specific SDGs, reporting on the Fund’s use of proceeds and on-going reporting and monitoring after the investments have been made.
The new facility comes soon after Standard Chartered announced it had taken over US$2 billion for its sustainable deposit product, which will finance projects aligned with the SDGs.
The capital call facility will last at least one year and the facility is structured as an umbrella sustainable secured capital call facility.
SCB acted as the sole Sustainability Coordinator. The investment strategy is set up to solely invest in sustainable projects and the investment process is based on three key elements:
Logic Model: Establishment of a formal link between a potential investment and an SDG;
Impact management: Formal management of impact aligned with the IFC Operating Principles, monitoring and reporting services.
The facility agreement incorporates on-going reporting and monitoring requirements with regards to the investments made and the use of proceeds.
“We believe we have an important role to play in a sustainable world, and structuring and funding SDG-aligned projects can help do just that. We want this new transaction to both support and promote further investment by private equity fund managers in sustainable projects while also maintaining the integrity of the sustainable loan market,” David Law, Global Head, Financial & Strategic Investors Group, Standard Chartered, said.
Meanwhile, Standard Chartered Bank announced the appointment of Abbass Husain as the new Regional Head of Corporate Finance in charge of Africa and the Middle East.
According to a statement Hussain will also combine his new role with that of being the Head of Project & Export for the Middle East, North Africa, and Pakistan. He will be based in Dubai.
Husain has nearly 24 years of banking experience, out of which he has spent 17 years at Standard Chartered Bank where he had reportedly led one of the largest and most successful Project & Export Finance teams.