PDS Ltd and HSBC Bank Middle East Launch Sustainable Trade Financing Facility

PDS Ltd has announced a groundbreaking trade financing facility in collaboration with HSBC Bank Middle East Ltd, marking a significant milestone for both parties. The new facility, unveiled at a signing ceremony in Dubai, will enable PDS to deploy substantial working capital towards key strategic initiatives worldwide. This partnership highlights a progressive step in integrating sustainable finance into trade operations.

The agreement was formalised with Dr Deepak Kumar Seth, Chairman of PDS, Patricia Gomes, Head of Commercial Banking for HSBC in the Middle East, North Africa, and Türkiye, and Mohamed Marzooqi, Chief Executive of HSBC UAE. 

This collaboration is notable as it represents HSBC Bank Middle East Ltd’s first venture where the sustainable finance key performance indicators (KPIs) associated with the facility were simultaneously standardised and approved by authorities in two distinct markets – the UAE and Hong Kong.

The facility integrates environmental targets directly into its financing strategy, reflecting a commitment to reducing PDS’s ecological footprint. Over the course of this five-year agreement, HSBC will link financing costs to the achievement of specific sustainability targets. These include reductions in greenhouse gas (GHG) emissions, freshwater consumption, and enhanced global compliance coverage.

Commenting on this development, the Chairman of PDS, Dr Deepak Kumar Seth, said, “We are thrilled to partner with HSBC Bank Middle East Ltd on a sustainability-linked trade financing initiative. This partnership aligns perfectly with our commitment to driving positive environmental and social impact across our operations. By integrating sustainability targets into our financial strategies, we are not just funding our business but also investing in a better future. This collaboration marks a pivotal moment in our journey towards greater accountability, transparency, and impact, setting new benchmarks for the industry.”

Patricia Gomes, Regional Head of Commercial Banking at HSBC, stated, “Sustainability is an increasingly critical business agenda across different sectors and industries. This is a meaningful step in our long-term relationship with PDS. We are pleased to have been able to support them in structuring their inaugural sustainability-linked financing, incorporating a set of KPIs that are core and aligned to their sustainability strategy.” 

This innovative approach to trade financing underscores a broader trend of aligning financial practices with sustainability goals. By integrating measurable environmental objectives, PDS and HSBC are setting a precedent for how trade financing can be leveraged to support global sustainability efforts.

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