HSBC launches new unit for green infrastructure finance

HSBC UK established a new unit, HSBC Infrastructure Finance (HIF), to focus on infrastructure and project finance related to the global shift to a lower-carbon economy.

The unit, led by former UK government minister Danny Alexander, aims to secure a significant market share in key areas, incorporating parts of the bank’s Global Banking Real Asset Finance team.

This move marks HSBC’s return to Project Finance Advisory, a sector where it currently has limited capability.

The bank hopes HIF will bolster its debt origination and distribution businesses and foster new public and private sector partnerships. This initiative aligns with HSBC’s commitment to achieving net-zero emissions by mid-century, gradually reducing lending to high-polluting sectors.

The OECD, World Bank, and United Nations estimate that $6.9 trillion in annual investment is needed by 2030 to meet global climate and sustainable development goals.

HIF will collaborate closely with HSBC’s CMB Infrastructure Finance team and oversee its Pentagreen Capital joint venture, a sustainable infrastructure debt unit launched with Singapore’s Temasek.