HSBC mulls financial package for 'green' firms

The Hong Kong and Shanghai Banking Corporation Ltd (HSBC) is mulling the launch of a financial package that may include a differential interest rate structure for companies going green.

HSBC, which is seeking to minimise direct and indirect impacts on environment, will support corporates across the country to bring down carbon emissions, Naina Lal Kidwai, group general manager and country head, HSBC India said.

"Financial institutions like HSBC have an important role to play in the transition to a low carbon economy. HSBC's carbon finance strategy aims to support businesses that are developing cleaner, commercially-viable technologies such as wind, solar, biofuels. We are open to an idea of designing a special financial package to companies that will adopt a greener approach and reduce carbon emissions," she said.

HSBC is working closely with its offices in Hong Kong and the UK, has successfully structured a complex trade finance deal, refinancing a prepayment made by an overseas customer for buying carbon credits accruing to an Indian company over the next five years, she told reporters here today.

Kidwai said the bank has extended about $100 million to a couple of Indian companies in the petrochemicals and fluoro carbons sector for achieving carbon credits.