The Hongkong and Shanghai Banking Corporation Limited (HSBC) recently signed an agreement with Grameenphone to structure the first-ever sustainability-linked loan (SLL) in Bangladesh's telecom industry.
HSBC was the sole arranger, according to a press release.
Yasir Azman, chief executive officer of Grameenphone, and Md Mahbub ur Rahman, chief executive officer of HSBC Bangladesh, signed the agreement in Dhaka.
Commenting on the financing facility, Azman said, "As we work towards our ESG ambitions by reducing our carbon footprint by 50 percent by 2030, achieving 100 percent e-waste recycling, driving digital inclusion and more, this partnership further accelerates our journey to keep sustainability at the core of our business."
"We remain dedicated to ensuring that every individual can participate in and benefit from a digitally empowered and sustainable society," he added.
Md Mahbub ur Rahman, chief executive officer of HSBC Bangladesh, remarked, "Supporting our customers is core to our strategy, and supporting their sustainability transition is both critical to them and aligned with our net-zero ambition."
"Our collaboration with Grameenphone sets a strong market benchmark by tying finance to the client's carbon emission reduction commitments at a local level. This partnership inspires sector-wide action and positions Bangladesh's telecom industry as a leader in sustainable, inclusive and equitable growth," he added.
The partnership will support Grameenphone's climate action goals and environmental stewardship, reinforcing the company's commitment to sustainable operations.
The sustainable financing facility will support Grameenphone's ambition to achieve a sizeable reduction in Scope 1 and Scope 2 emissions by 2030, benchmarked against the 2019 baseline, and to maintain 100 percent recycling of e-waste, including lead-acid batteries and network equipment.
The SLL will also help promote digital inclusion and enhance technological awareness among wider communities across the country.