StanChart debuts sustainable offering for retail, corp clients

Singapore

STANDARD Chartered Singapore on Tuesday launched its sustainable deposit offering for both corporate and retail clients in Singapore, said to be the first of its kind in Asia.

The bank is offering to retail clients a promotional rate of 1.9 per cent interest per annum for a minimum placement of US$5,000 for a tenor of three months; priority banking clients get a rate of 2 per cent.

The promotion lasts till Oct 31, and applies only to fresh funds with the bank.

The liquidity raised will be referenced against sustainable assets supported by the United Nations' Sustainable Development Goals (SDGs), and go towards financing climate-friendly projects and small and medium-sized enterprises in developing countries, and undertaking microfinance and providing funds for a variety of sustainable projects.

This follows StanChart's launch of its sustainable deposit in the UK in May, but it was available only to corporate investors.

Patrick Lee, the chief executive of StanChart Singapore, said that while "green" deposits (that is, those dedicated to renewable energy) are rising in popularity, this is the first time any bank has launched a deposit product linked to sustainability and the SDGs.

With Singapore a key financial centre, the bank can use its network to direct capital flows into areas where they are needed most, he said.

Asked why the bank is making this available to retail clients in Singapore, he replied that StanChart was taking its cue from its clients.

A StanChart survey found that Singapore has the highest number of high-net-worth investors in Asia who are savvy about sustainable investing, and this is expected to grow.

"In corporate banking and asset management, we have seen a mainstreaming of environmental and social governance in risk management, financing decisions and investment analysis.

"This is now commonly a compliance requirement in more and more markets around the world."

The sustainable deposit, launched under the bank's "Green and Sustainable Product" Framework, is developed in collaboration with Sustainalytics, a provider of environment, social and corporate governance research.

The framework sets the basis for future sustainable products to fund the SDGs across the bank's markets, especially in developing countries.

The United Nations estimates that US$2.5 trillion is needed each year to achieve the SDGs in developing countries. It is a funding gap that cannot be closed by the public sector or bank-lending alone, which presents a need and an opportunity to diversify sources of funding and unlock private capital, said StanChart.