The Hongkong and Shanghai Banking Corporation (HSBC) in Bangladesh recently introduced the country’s first Social Loan Principles (SLP)-based financing for Thengamara Mohila Sabuj Sangha (TMSS), one of the largest microfinance institutions.
The SLP, published by Loan Market Association (LMA) and Asia Pacific Loan Market Association (APLMA), endeavours to facilitate and support economic activities aimed at mitigating social challenges. SLP has been developed by a team of experienced professionals from leading financial institutions and law firms on the global loan markets, said a press release.
TMSS which operates mostly in rural areas of Bangladesh will use this loan to alleviate poverty, generate employment and facilitate small entrepreneurs of agriculture and SME sectors.
Shaikh Md Salim, executive director of Bangladesh Bank Bogura Office, said “Bangladesh Bank highly emphasises agriculture, CMSME, women entrepreneur, and green financing which is vital for having a sustainable economy & achieving SDGs. HSBC’s Social Loan aligns with these priorities”.
Professor Dr Hosne Ara Begum, founder and executive director of TMSS said, “We are delighted to partner with HSBC to contribute to the social development of Bangladesh, and optimistic that this partnership will have a remarkable milestone for the country’s development”.
Commenting on this, Md Mahbub ur Rahman, chief executive officer of HSBC Bangladesh said, “We are proud to be able to introduce the very first SLP based financing in Bangladesh for TMSS. This is part of our global sustainability commitment and thanks to our central bank for an enabling policy environment to foster such a collaborative platform. I also thank TMSS for partnering with us with an objective to ensure social support in the community.”
Kevin Green, Country Head of Wholesale Banking, HSBC Bangladesh said, “Sustainability is part of our DNA. We support environmentally and socially sustainable economic activity and growth by helping our customers to adopt business models which are aligned to our global sustainable ambition.“
This is the first SLP-based financing in Bangladesh that aims to achieve United Nations' Sustainable Development Goals (SDGs), working in areas of employment generation, poverty alleviation and supporting small businesses, the release added.