HSBC, Grameenphone sign first sustainability-linked loan in telecom sector
The Hongkong and Shanghai Banking Corporation Limited (HSBC) and Grameenphone have collaborated to structure the first sustainability-linked loan (SLL) in Bangladesh's telecom sector, with HSBC acting as the sole arranger.
The signing ceremony was held recently in the presence of Yasir Azman, chief executive officer of Grameenphone, Md Mahbub ur Rahman, chief executive officer of HSBC Bangladesh, and senior officials from both organisations.
Grameenphone is the largest mobile telecommunications service provider in Bangladesh and has emphasised its commitment to responsible business practices that create long-term value for customers, shareholders and society. The company has aligned its sustainability ambitions with the Paris Agreement goals and the United Nations Sustainable Development Goals.
The partnership is aimed at supporting Grameenphone's climate action objectives and strengthening its environmental stewardship. The sustainability-linked financing facility will support the company's goal of achieving a significant reduction in Scope 1 and Scope 2 greenhouse gas emissions by 2030, compared to its 2019 baseline. It also includes a commitment to maintain 100% recycling of electronic waste, including lead-acid batteries and network equipment.
In addition, the facility is expected to contribute to digital inclusion and improve technological awareness among communities across the country.
Commenting on the financing facility, Grameenphone Chief Executive Officer Yasir Azman said, "At Grameenphone, we are committed to building a greener, more inclusive and future-ready Bangladesh. As we work towards our ESG ambitions, including reducing our carbon footprint by 50% by 2030 and ensuring 100% e-waste recycling, this partnership accelerates our journey to embed sustainability at the core of our business."
HSBC Bangladesh Chief Executive Officer Md Mahbub ur Rahman said supporting clients in their sustainability transition remains a key priority for the bank. "Our collaboration with Grameenphone establishes a strong market benchmark by linking financing to measurable carbon emission reduction commitments at the local level. This partnership encourages sector-wide action and positions Bangladesh's telecom industry as a leader in sustainable and inclusive growth," he said.