HSBC issues first green mortgages in the UAE

SectorFinancial Markets

HSBC has issued the first green mortgages in the UAE as it approved three mortgages for home buyers in Dubai’s The Sustainable City community. The green home loans, available for properties across the UAE, offer an interest rate discount of 0.25 per cent for properties that meet certain sustainable criteria and a 50 per cent discount on arrangement fees, HSBC said. “Sustainable development is more important now than it’s ever been and it’s vital that banks support customers with competitively priced green finance, and to encourage more sustainable behaviours,” Daniel Robinson, head of wealth & personal banking at HSBC UAE, said.

Issuing the UAE’s first-ever green mortgages demonstrates the appeal of green retail finance to customers looking to make more sustainable decisions while appreciating the financial upside, he added. Banks across the world are increasingly looking to issue instruments that comply with environmental, social and governance (ESG) considerations. According to Climate Bonds Initiative cumulative green bond issuances have more...