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Climate change: HSBC launches first yuan-denominated green certificate of deposit in Asia
- Hong Kong retail customers can subscribe to new green finance product beginning on Monday
- Offering comes as Hong Kong seeks to market itself as a centre for international green finance
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HSBC is offering Asia’s first yuan-denominated green certificate of deposit (CD) to retail customers in Hong Kong, the latest climate product by one of the city’s big financial institutions.
Retail customers would be able to subscribe in 10,000 yuan (US$1,545) increments, with the three-month CD paying a fixed rate of 2.02 per cent per annum, according to HSBC. The subscription period will run from Monday until February 26, with the CDs issued on March 5.
HSBC, one of the city’s three currency issuing banks, said proceeds from the green CD would be used for financing businesses and projects that “promote the transition to a low-carbon, climate resilient and sustainable economy”.
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The new product comes as financial institutions are facing increasing pressure to address climate change in their lending and investment practices and Hong Kong seeks to market itself an international centre for green finance, particularly around the development of the Greater Bay Area.
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Sustainability: Green bonds to help drive China's push towards carbon neutrality
Sustainability: Green bonds to help drive China's push towards carbon neutrality
In January, Hong Kong’s government priced what it said was the first 30-year green bond by an Asian government ever and the longest tenor bond in its history, raising US$2.5 billion. HSBC, alongside Credit Agricole, acted as joint global coordinators on the Hong Kong government’s latest green bond.
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