HSBC issues Asia's first green retail certificates of deposit in Hong Kong

 HSBC announced the issuance of Asia’s first green retail certificates of deposit (‘Green CD’) in Hong Kong , making green financing products more accessible to its retail and commercial customers.

Until 13 December 2019*, HSBC customers can subscribe for the Green CD tranche through HSBC branches, HSBC Business Banking Centres, HSBC Personal Internet Banking, and the HSBC HK Mobile Banking app. With a minimum deposit amount of USD10,000 and a three-month tenor, the Green CD offers a fixed coupon rate of 1.71 per cent per annum.

Proceeds will go towards financing eligible businesses and projects that promote the transition to a low-carbon, climate resilient and sustainable economy as defined by the HSBC Green Bond Framework. Qualified sectors include renewable energy, energy efficiency, efficient buildings, sustainable waste management, sustainable land use, clean transportation, sustainable water management and climate change adaptation.

HSBC’s Sustainable Financing and Investing Report 2019 shows Hong Kong investors recognise the commercial benefits of environmental, social and governance (‘ESG’) investing and financing. Over half of the territory’s investors equate ESG engagement with improved investment returns or reduced risks, which is mirrored by global and Asia-wide figures of 54 per cent and 58 per cent respectively.

Diana Cesar, Chief Executive, Hong Kong, HSBC, said: “Issuers and investors in Hong Kong and across Asia are demonstrably prioritising environmental and social issues with their increased support. Green certificates of deposit enable a broader base of retail customers to finance green initiatives and further strengthen Hong Kong’s position as a leading international green finance hub in Asia. This issuance is an exciting milestone for HSBC in the sustainable finance market and underpins our commitment to playing a meaningful part in the transition to a greener economy.”

Re-disseminated by The Wealth and Society