Standard Chartered Launches Sustainable Receivables Financing Facility

Standard Chartered Bank announced the completion of the region’s first Receivables Financing Facility for Siemens in the UAE, a technology company focused on the digital transformation of industry and infrastructure.

The innovative solution developed for Siemens is meant to support their multiple long-term contracts with a large UAE-based company to provide energy-efficiency solutions targeting a reduction in electricity consumption by 10-25%.

Siemens was able to monetise their receivables from these contracts using Standard Chartered’s facility, which relies on future energy-savings generated from Siemens’ supplied solution.

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As part of this strategic partnership, the facility has an added credit protection, provided by Etihad Credit Insurance (ECI), UAE’s federal Export Credit Agency and Credit Insurer.

ECI has touted this transaction to be using the first-of-its-kind ESG-linked insurance policy.

Rola Abu Manneh, Chief Executive Officer, Standard Chartered UAE, said: “We are pleased to offer this innovative receivables financing programme which helps our clients maintain healthy liquidity and cash flow levels that support them in achieving their sustainability objectives.

"Furthermore, we are committed to supporting the growth and development of sustainable finance and look forward to witnessing this innovative solution contributing to the UAE’s Net Zero objective.”    

Massimo Falcioni, Chief Executive Officer, Etihad Credit Insurance, said: “We’re proud to cooperate with Standard Chartered Bank to ease Siemens access to the bank’s trade finance solutions, through an Etihad Credit Insurance ESG-linked receivable finance insurance policy.

"This facility will benefit Siemens to support their multiple long-term contracts with a large UAE-based company, which has the ambition to become one of the leading sustainable and efficient energy-efficiency service providers in the wider MENA region."

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