HSBC facilitates Bangladesh's first sustainability-linked loan for Grameenphone

HSBC, acting as the sole arranger, has structured Bangladesh's first sustainability-linked loan in the telecom sector, linking Grameenphone's financing costs to measurable climate and environmental targets and signalling a shift towards performance-based corporate lending in the country.

The signing ceremony took place in Dhaka, attended by Yasir Azman, CEO of Grameenphone, Md Mahbub ur Rahman, CEO of HSBC Bangladesh, and senior officials from both organisations today (14 December).

Photo: Courtesy

The loan will support Grameenphone's climate action goals, including a significant reduction in Scope 1 and Scope 2 carbon emissions by 2030, compared with the 2019 baseline, and the complete recycling of e-waste, including lead-acid batteries and network equipment.

The facility will also advance digital inclusion and enhance technological awareness across communities in Bangladesh, reads a press release.

Commenting on the partnership, Yasir Azman said, "This collaboration accelerates our journey to keep sustainability at the core of our business, enabling a greener, more inclusive, and digitally empowered Bangladesh. We remain dedicated to ensuring that every individual can participate in and benefit from a sustainable society."

Md Mahbub ur Rahman added, "Supporting clients in their sustainability transition is central to HSBC's strategy and aligns with our net zero ambitions. By linking finance to measurable carbon reduction targets, this partnership sets a benchmark for the market and positions Bangladesh's telecom sector as a leader in sustainable, inclusive growth."

Grameenphone, the largest mobile telecommunications provider in Bangladesh, is committed to responsible business practices that create value for its people, shareholders, and society, while advancing environmental stewardship in line with the Paris Agreement and Sustainable Development Goals.