Standard Chartered has raised €1 billion through its first dedicated green bond, targeting renewable energy, green buildings and other climate-aligned investments across Asia, Africa and the Middle East, as it deepens its sustainable finance activities in emerging markets.
The London-headquartered bank confirmed the issuance on January 8, stating that proceeds will be used to finance projects that reduce greenhouse gas emissions, enhance climate resilience and strengthen environmental infrastructure in developing and emerging economies.
This marks the bank’s fifth thematic bond and follows a €1 billion social bond issued in 2025 that supported low-income countries. Unlike the earlier issuance, the new bond is focused exclusively on green assets, reflecting growing expectations for global lenders to channel capital toward climate transition priorities, particularly in regions most exposed to climate risk and financing gaps. Standard Chartered said its sustainable finance asset pool now totals $17.4 billion in green assets across more than 350 projects.
The portfolio spans renewable power generation, energy-efficient buildings, waste-to-resource initiatives and water management systems aimed at reducing losses and improving long-term supply security. More than 70 percent of these assets are located in Asia, Africa and the Middle East, underscoring the bank’s emphasis on markets where climate needs and development imperatives intersect.
Senior executives described the bond as a natural extension of Standard Chartered’s role in global capital markets and its long-standing focus on emerging economies. Group Chief Financial Officer Diego De Giorgi said the issuance highlights the bank’s ability to mobilise large pools of capital for regions where investment gaps remain significant, adding that linking developed-market capital to transition projects abroad is essential to meeting global decarbonisation targets under the Paris Agreement.
Investor demand was strong, with orders reaching nearly €3.9 billion, almost four times the amount offered, signalling continued appetite for green-labelled debt and growing confidence in climate investments beyond traditional Western markets.
While global sustainable bond issuance surpassed $3 trillion cumulatively in 2025, Africa remains underrepresented, accounting for less than 3 percent of labelled bond volumes. Instruments such as Standard Chartered’s green bond, which will partially support African projects, are seen as steps toward narrowing this gap.
Chief Sustainability Officer Marisa Drew noted that investments in lower-income energy markets can deliver disproportionately high emissions reductions. She cited Indonesia as an example, where renewable energy projects often displace coal generation, resulting in significantly higher emissions savings than comparable investments in mature European markets. Similar dynamics apply across many African economies, where access to affordable finance can determine whether utilities expand renewables or remain reliant on fossil fuels.
The implications for Africa are significant as countries such as Kenya, South Africa, Egypt and Ghana scale up renewable energy programmes to meet rising power demand and reduce dependence on costly thermal generation. Kenya alone attracted close to $1 billion in climate-aligned finance commitments in 2025 to strengthen grid infrastructure and expand wind and geothermal capacity. However, the International Energy Agency estimates that clean energy investment in Africa must quadruple to more than $120 billion annually by 2030 to meet development and climate goals.
Beyond energy, the bond proceeds may also support green buildings and circular economy projects, highlighting growing investor interest in sustainable construction and waste recovery. Cities including Nairobi, Kigali and Lagos are tightening building standards and exploring low-carbon materials, while waste-to-resource ventures are beginning to attract early-stage capital.
Standard Chartered is yet to provide a detailed geographic allocation of the bond proceeds, but its recent financing history includes renewable energy projects in East Africa, commercial building retrofits in South Africa and infrastructure development in West Africa. Market observers expect several African economies to feature prominently as funds are deployed.
