China News Service, May 17. According to Hong Kong Wenhui.com, HSBC announced today (17th) that it has launched an 18-month, US$5 billion Greater Bay Area Sustainable Development Credit Fund, covering green loans and sustainable performance. Different sustainable finance solutions, such as Linked Loans (SLL), support GBA enterprises in their sustainable development and net-zero carbon transition.
This credit fund is set up for enterprises based in the Greater Bay Area, with no size limit, whether it is a manufacturer and property builder planning to reduce carbon emissions, or business related to climate change, pollution reduction, green transportation, renewable energy, Industries such as water resources and sustainable wastewater management can apply.
As for emerging climate technology companies in the early stage of profitability, in addition to the HSBC "Greater Bay Area+" technology credit fund, they are also eligible to apply for this green financing program.
HSBC pointed out that the loan has a wider range of uses than green loans. As long as it is linked to "ESG", that is, any element of environmental protection, society, and governance, the interest rate will be more favorable than that of ordinary loans, and the entry loan amount is only HK$100,000. The loan term is generally 2 to 3 years.
Last year, the sustainable performance-linked loans of HSBC commercial bank customers tripled year-on-year. HSBC expects to maintain an upward trend in the future. It also pointed out that if the demand for the newly launched credit fund is strong and the total amount will explode soon, it will consider adding more.