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HSBC nearly doubles Greater Bay Area sustainability fund to US$9 billion, after response ‘exceeds expectations’
- HSBC GBA Sustainability Fund has been increased from an initial US$5 billion to US$9 billion
- Chevalier Group, the recipient of a HK$100 million loan for the construction of co-living housing, ‘honoured’ to contribute to ‘a sustainable future’
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The HSBC GBA Sustainability Fund, which aims to support companies in the Greater Bay Area (GBA) in lowering their carbon emissions, has been increased from an initial US$5 billion to US$9 billion.
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The debt finance scheme has been well received since its launch in May 2022, and now the bank plans to double the fund size, strengthening it beyond banking support to help businesses meet their net-zero goals, HSBC said in a statement on Wednesday.
The GBA’s green and sustainable debt market continues to expand, with green and sustainable loan issuances in Hong Kong amounting to US$52.7 billion last year, a more than 100 per cent increase compared to the previous year. Meanwhile, the green loan balance of Guangdong province reached 2.2 trillion yuan (US$302.2 billion) in 2022, indicating an annual growth of 53.3 per cent.
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“The green transformation of the GBA is going to require massive capital investment,” said Frank Fang, general manager and head of commercial banking at HSBC Hong Kong and Macau. “The customer response to the HSBC GBA Sustainability Fund has far exceeded our expectations.”
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