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 yesterday, making green financing products more accessible to its retail and commercial customers.

Until 13 December, 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 $ 10,000 and a three-month tenor, the Green CD offers a fixed coupon rate of 1.71% 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% and 58% respectively.

HSBC Hong Kong Chief Executive Diana Cesar 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.”

HSBC has been embedding sustainability into its products and services, including access to capital markets, lending, transaction banking, advisory services, and investments. 

HSBC acted as the sole green finance adviser and joint mandated lead arranger and bookrunner for the first green loan in Hong Kong, and launched a lending program in Hong Kong that allows customers to earn cash rewards for making carbon savings. 

HSBC has also delivered a range of sustainable finance transactions, such as Hong Kong’s inaugural sovereign $ 1 billion green bond, Industrial and Commercial Bank of China’s $ 3.15 billion Greater Bay Area green bond, the first green loan compliant with the Green Investment Principles for Belt and Road by Industrial and Commercial Bank of China, and the world’s first real estate green convertible bond from Link REIT.