HSBC Increases Greater Bay Area Sustainability Fund to US$9 Billion

HSBC’s  Greater Bay Area (GBA) Sustainability Fund (the Fund) has been upsized to US$9 billion – from its initial size of US$5 billion – after receiving a positive market response, the Bank said.

The Fund is a debt finance scheme dedicated to supporting sustainable activities and net zero transition initiatives of companies in the Guangdong-Hong Kong-Macau Greater Bay Area (GBA).

Since its launch in May 2022, the Fund has been catering to the growing demand for green and sustainable finance in the GBA.

Through the Fund, HSBC has recently made a HK$100 million green and social loan to Chevalier Group, the first of its kind arranged by the Bank in Hong Kong to support a project that meets both the Green Loan Principles and Social Loan Principles.

The loan proceeds will be used to build the superstructure of the “Jockey Club Key House”, the first local co-living project that provides one-stop accommodation and support for out-of-home youths and people in recovery.

The building is expected to attain BEAM Plus Platinum rating for its sustainability performance upon completion.

According to HSBC, the green and sustainable debt market in the GBA continues to grow apace. In the Guangdong Province, the green loan balance reached RMB2.2 trillion in 2022, representing a year-on-year growth of 53.3%, the Bank said.

Across the border in Hong Kong, which aims to become a regional centre for green and sustainable finance, green and sustainable loan issuance recorded an increase of more than 100% in 2022, amounting to US$52.7 billion.

Frank Fang, General Manager, Head of Commercial Banking, Hong Kong and Macau, HSBC, said, “The green transformation of the GBA is going to require massive capital investment, as well as financial innovations that encourage sustainable development. Customer response to the HSBC GBA Sustainability Fund has far exceeded our expectation. We are pleased to double the fund size and step up our beyond banking support to help businesses meet their net zero goals and future-proof their business models.”