PDS secures a major trade financing facility to support sustainability goals globally.
PC: fibre2fashion
A Milestone Partnership for PDS and HSBC
PDS, the world’s leading fashion infrastructure platform, is proud to announce its signing of a landmark trade financing facility with HSBC Bank Middle East Limited. Accordingly, this financing would defray large deployments of working capital at PDS, directly linked to independently defined material sustainability objectives, thus underlining the commitment of the company towards sustainable business practices. The ceremony in Dubai marked the official launch of this five-year facility, attended by PDS Chairman Dr. Deepak Kumar Seth, 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 is a facility of its kind for HSBC Bank Middle East Ltd. What crowns this deal very special is that, for the first time, it ushers in the approval of sustainability-linked KPIs by regulators from both the UAE and Hong Kong, illustrating how important this initiative is and will remain on a global scale. This financing facility tends to offer a novel approach that places environmental objectives at the centre of the company’s financial decisions and thus helps PDS reduce its ecological footprint while contributing to business performance growth.
Supporting Global Sustainability Goals
The five-year agreement with HSBC is a milestone in the transformation of how trade finance can be aligned with supporting sustainability. The terms of this facility include reduced financing costs that are linked to achieving key targets in sustainability. These will include quantifiable reductions in GHG emissions and freshwater consumption, as well as increased global compliance with environmental standards.
Commenting on the partnership, Dr. Deepak Kumar Seth said: “We are delighted to partner with HSBC Bank Middle East Ltd on this sustainability-linked trade finance initiative. This perfectly aligns with our commitment to creating positive environmental and social impact across our operations.”. Integrating sustainability objectives into our financial strategies means we are financing not just a business, but a better future. The result is a game-changing milestone in the industry’s journey to increased accountability, transparency, and impact-a new benchmark.
Patricia Gomes, Regional Head of Commercial Banking for HSBC in the MENAT region, said: “Sustainability is a growing critical business agenda across different sectors and industries. This is a meaningful step in our long-term relationship with PDS.”. We also feel quite proud because we have been able to support them in structuring their maiden sustainability-linked financing with a set of core KPIs aligned to its sustainability strategy.
She also reiterated the leading role that HSBC has been playing in the sustainable finance space: “As a leading bank in the sustainable finance market, we are keen to continue leveraging our expertise and comprehensive solutions to help clients navigate their transition.” HSBC’s involvement in this project testifies that it stands committed to bringing about environmentally responsible transitions of businesses with continued financial growth.
A Future-Forward Approach to Trade Financing
This makes the partnership between PDS and HSBC a new precedent in trade financing, where financial strategies are directly hitched to sustainability targets. This step has been part of an increasing tendency on the part of enterprises to embed environmental and social objectives within their operational frameworks, whereby financial growth is pursued with ecological responsibility.
This trade finance facility from HSBC will be important to further the company’s sustainability agenda, as PDS continues to expand its operations worldwide. The company is contributing concretely to a lower environmental impact and a more sustainable future by reduction of GHG emissions, conservation of freshwater, and improvement in compliance on a global scale.
What this deal between PDS and HSBC represents is huge, not only to both companies but also as a current moment of importance in the wider movement toward sustainability. Putting sustainability into trade financing provides a model for other firms working to drive their financial strategies in a way aligned with environmental goals, driving positive change across industries.
