The Saudi British Bank has announced the launch of a new Shariah-compliant green deposit product, making it the first in the Kingdom to allow retail and corporate clients to safely deposit their money toward green financing initiatives, with their funds generating competitive returns for short- to medium-term investments.
Clients will have access to a quarterly review of the industries that their funds support, and they can manage their green account as simply as a regular term deposit. The target sustainability themes that client funds may support include renewable energy, clean transportation, sustainable water management, and climate change adaptation.
Tony Cripps, managing director, SABB, said: “With the Saudi government action toward pursuing an ambitious green agenda, we have seen increased client interest in participating in the transition to a green future. This is just one action to help meet the Kingdom’s aspirations under the Saudi Green Initiative. Launching green deposits reflects SABB’s continued focus on sustainability and will help further embed green finance within the Kingdom.”
SABB continues to provide customers with a range of innovative solutions and products linked to sustainability, including its participation as one of the mandated lead arrangers on the SR14 billion ($3.7 billion) financing raised to fund the Red Sea project, as the first green credit facility denominated in Saudi riyals. This is in addition to offering customers access to the HSBC Global Equity Climate Change fund via HSBC Saudi Arabia.
“SABB will continue to support sustainable finance by playing a bigger role in supporting the Kingdom’s long-term development. ESG and sustainability are key to SABB’s five-year strategy, along with supporting new projects that will help the Kingdom achieve a more sustainable future,” a press release said.
Established in 1978, SABB is a licensed financial institution operating under SAMA supervision and control. It is a Saudi joint stock company and an associate company of the HSBC Group.
SABB offers integrated financial and banking services including personal banking, corporate banking, investment, private banking and treasury. SABB’s paid-up capital is SR20.5 billion after the legal merger with Alawwal Bank, as the two banks became one entity and one of the largest banks in the Kingdom.
