Dubai: HSBC has issued the first green mortgages in the UAE, heralding a significant moment for the country’s housing market, future homeowners, and sustainable finance.
The three loans were approved for HSBC customers purchasing houses in The Sustainable City community in Dubai.
HSBC UAE’s green home loans offer an interest rate discount of 0.25 per cent for properties that meet certain sustainable criteria, and a 50 per cent discount on applicable arrangement fees.
“Sustainable development is more important now than it’s ever been and it’s vital that banks support customers with competitively priced green finance, and to encourage more sustainable behaviours. Issuing the UAE’s first-ever green mortgages is a significant moment for the country’s housing and financial markets, and demonstrates the appeal of green retail finance to customers looking to make more sustainable decisions while appreciating the financial upside,” said Daniel Robinson, Head of Wealth & Personal Banking at HSBC UAE.
Not only a first for the UAE, the green mortgages are also the first issued by HSBC globally, demonstrating the importance of the UAE to HSBC’s global strategy and underlining the bank’s commitment to environmental, social, and governance issues in the Emirates.
“We, at The Sustainable City, are proud to be the first development in the region to have our residents benefit from the issuance of HSBC's green mortgage. With a commitment towards achieving net-zero carbon living, we have worked hard to set high standards of sustainability across all our communities,” said Faris Saeed, Chairman of Diamond Developers, developer of The Sustainable City.
In January 2021, HSBC formed a dedicated Sustainable and Transition Finance Team (STFT) in the Middle East to help institutions, corporates and individuals transition to a more sustainable economy. HSBC saw a six-fold increase in 2020 over the previous year in sustainable and transition finance activity in the region.
HSBC’s green mortgage product is applicable for properties that are either LEED-certified or if they meet similar requirements, and HSBC’s STFT reviews properties to validate eligibility on a case-by-case basis. As well as green mortgages, HSBC UAE’s Wealth & Personal Banking business offers other sustainable products including green car loans and sustainable investment fund options.