HDB allocates EGP 3.85bn to sustainable financing in 2022: Chairperson

Hossam Mounir
4 Min Read

Hassan Ghanem, Chairperson and Managing Director of the Housing and Development Bank (HDB), confirmed that the bank attaches great importance to sustainable financing to achieve long-term stability of the economic, environmental, and social climate.

According to Ghanem, the total funds allocated to serve the principles of sustainable financing reached about EGP 3.85bn, equivalent to 27% of the total finance to major companies and syndicated loans in 2022.

Ghanem pointed out the importance of sustainability and sustainable financing and their role in supporting financial and banking stability, as one of the main pillars for achieving sustainable development goals, by integrating environmental and social elements and governance rules when providing financing, because of its positive impact on corporate performance and reducing risk ratios, as well as directing capital to sustainable projects through the issuance and management of sustainable and green financial instruments to finance projects that fall within the programs and agenda of sustainable development.

He affirmed the bank’s keenness to support all efforts aimed at the optimal use of natural resources and energy and support the transformation of the green economy, in addition to its constant interest in applying environmentally friendly solutions through the bank’s support for innovation and technology.

The Housing and Development Bank participated in the Sustainability and Sustainable Finance Forum in Sharm El-Sheikh from 17 to 19 March 2023, organized by the Union of Arab Banks in cooperation with the Central Bank of Egypt and the Federation of Banks of Egypt, with the participation of more than 200 banking and financial leaders from 14 countries.

The participation of the Housing and Development Bank in the forum comes within the framework of its belief in the need to establish sustainability standards in its various activities and businesses, in addition to its constant keenness to participate in initiatives and programs aimed at consolidating the principle of sustainable development, in order to enhance the plans of the state and the Central Bank to shift towards a green economy, through increased investment. Green to mitigate the effects of climate change, as a strategic step towards reducing environmental risks associated with the economy and achieving sustainable development in accordance with Egypt’s Vision 2030.

The forum aims to shed light on mechanisms to enhance banking sustainability and sustainable financing, and to identify the challenges and risks facing central banks and banks during the transition towards green banking, in addition to presenting strategies and initiatives and the role of each of the international financing institutions, central banks, banks and government organizations in promoting the principle of sustainability and sustainable financing and their contribution to enhancing financial and banking stability, while discussing the requirements for applying and including sustainable financing policies within the credit and investment policies of banks, and reviewing global best practices and initiatives related to sustainable financing.

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