HSBC Launches Investment Unit With 35 Dealmakers as Part of ESG Push -- Financial News
July 27 2020 - 10:16AM
Dow Jones News
By Paul Clarke
Of Financial News
HSBC Holdings PLC created a new division of 35 dealmakers that
includes a team dedicated to environmental, social and governance
issues that will draw on "hundreds" of bankers across the U.K.
lender.
In the latest shake-up to its global banking business under new
bosses Greg Guyett and Georges Elhedery, the bank unveiled a unit
called Strategic Solutions Group, which will be led by Nik Dhanani,
an HSBC veteran.
The division will be spread across Europe, the U.S. and Asia,
the bank said in a statement, and aims to bring all of HSBC's
sector and product teams together for deals.
As part of the changes, a new ESG solutions division will sit
within the team. HSBC's move follows Citigroup Inc. and Deutsche
Bank AG, which have both created dedicated ESG investment banking
teams this year in a bid to capitalize on what is expected to be a
surge in activity in this area.
Sustainable bonds in particular have surged this year, with a
record $131 billion issued during the second quarter of 2020,
according to Refinitiv data.
Greg Guyett, co-CEO of global banking and markets at HSBC, said
that Covid-19 presents a "unique opportunity to rebuild our
economies and companies so they are more financially resilient and
can transition to more sustainable business models".
"This new group will work with all our bankers across sector,
product and geography to assess client needs and deliver actionable
solutions which are in the best interests of our clients," he
added.
The new ESG unit will be headed by Jonathan Drew, based in Hong
Kong, working with Farnam Bidgoli in London and Julie Bennett in
New York.
The latest changes come amid a broader bank overhaul that will
see 35,000 jobs cut and around $100 billion in risk-weighted assets
stripped out, largely from its trading business.
In April, HSBC unveiled new units including a Client Leadership
team led by HSBC veteran Patrick Nolan, aimed at targeting
corporate restructurings that are likely to emerge from the
Covid-19 crisis, and a new capital financing and investment-banking
coverage team comprising senior bankers across capital markets and
mergers and acquisitions.
The U.K. lender has frozen recruitment after restarting job cuts
that were paused amid the peak of the coronavirus crisis. However,
it continues to selectively hire senior investment bankers,
latterly hiring Adam Bagshaw as global co-head of advisory and
investment banking coverage from Deutsche Bank.
Website: www.fnlondon.com
(END) Dow Jones Newswires
July 27, 2020 10:01 ET (14:01 GMT)
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