
December 17, 2022 - HSBC announces plans to halt funding for new oil and gas developments, but Canadian unit will be exempted
HSBC announces plans to halt funding for new oil and gas developments, but Canadian unit will be exempted by Stefanie Marotta
Appeared in The Globe and Mail on December 14, 2022
Gina's Thoughts
This is our last SOTW before the holidays and we have some bad news and some good news. First the bad news: HSBC Holdings, the world's eighth-largest bank, announced earlier this week that they will no longer invest in new oil and gas projects. Now the good news: HSBC's Canadian branch is exempt from this new policy and RBC is in the process of buying them. Why is HSBC Canada exempt? Because they are going through a deal with RBC who agreed to purchase the Canadian unit for $13.5 billion at the end of November and you can't force new policy on a division that is in the process of being purchased. Could it also be that HSBC Canada is exempt because of projections for continued growth in oil and gas demand for decades to come? Merry Christmas and Happy Holidays. InvestNow's SOTW will be back in the New Year!
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