HSBC Establishes New Unit for Climate-Focused Infrastructure Finance

HSBC has launched HSBC Infrastructure Finance (HIF), a new division aimed at capitalizing on infrastructure and project finance opportunities linked to the global transition to a lower-carbon economy. This initiative will be led by former UK government minister Danny Alexander, currently the vice president for policy and strategy at the Asian Infrastructure Investment Bank (AIIB). Alexander will start his new role in November, based in London, and report directly to Greg Guyett, CEO of Global Banking & Markets at HSBC.

HIF seeks to secure a significant share of infrastructure finance and project finance deals in key markets. The unit will incorporate parts of HSBC’s Global Banking Real Asset Finance team, including infrastructure finance, export finance, and portfolio management. This move marks a return to 'Project Finance Advisory' for HSBC, which previously had limited capability in this area.

The creation of HIF comes as HSBC and other banks increasingly align their operations with corporate commitments to achieve net-zero emissions by 2050. The global shift to a cleaner economy is expected to require substantial investment, with the OECD, World Bank, and United Nations estimating an annual need of $6.9 trillion by 2030 to meet climate and sustainable development goals.

HIF will work closely with HSBC’s CMB Infrastructure Finance team and oversee Pentagreen Capital, a sustainable infrastructure debt unit launched in partnership with Singapore investment firm Temasek. Until Alexander assumes his role, the new unit will be co-led by Alexi Chan and James Dynon.

HSBC’s launch of HIF underscores its commitment to supporting the transition to a low-carbon economy through strategic infrastructure investments and partnerships, positioning the bank to play a crucial role in the sustainable finance market and contribute to global climate goals.