DUBAI: Saudi British Bank (SABB) deposited its first funds with HSBC in the UAE to finance only sustainability linked projects, becoming the first Saudi Arabian institution to make what's called "green deposit", according to a statement.

Funds deposited will be used by HSBC to provide financing for green projects and initiatives such as renewable energy, energy efficiency, green buildings and biodiversity conservation.

The first green deposit issued in UAE dirhams is one of the first green deposits made by a financial institution in the Middle East, the banks claimed.

The deal comes just a few months after HSBC launched green deposits in the UAE, it said, adding that it's the third green deposit issued so far.

Mohammed Al-Shaikh, Deputy Managing Director of Treasury at SABB, said: “It gives us great pleasure to announce the Kingdom’s first green deposit which is a true testament of the pivotal role ESG plays in our merged bank’s newly announced strategy. Our partnership with HSBC puts us in a unique position to expand our offering continuously and provide best in class solutions for our customers and the Kingdom as a whole.”

"Clients of HSBC’s green deposits receive a portfolio-level view of how their funds have been deployed to support sustainable projects, with the ability to manage their green account as simply as a regular deposit account," according to the statement.