Climate change: HSBC grants first green loan in Hong Kong to tech firm Ampd Energy

The lender has provided an US$8 million two-year loan to Ampd Energy, to fund its giant batteries deployed at construction sites

Loan shows how the financial sector can play an active role in unlocking the potential of green technology innovation, HSBC executive says

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AMPD Energy CEO Brandon Ng with an AMPD energy storage system in the Tseung Kwan O Industrial Estate. Photo: Jonathan Wong

Published: 3:00pm, 1 Mar 2023

HSBC has granted its first green loan to a climate-mitigation technology firm in Hong Kong, as part of its efforts to fight global warming by financing clients’ emissions reduction projects.

The London-headquartered lender has provided an US$8 million two-year loan to Ampd Energy, to fund its giant batteries deployed at construction sites. The batteries help construction firms and property developers slash their carbon footprints by cutting diesel generator use.

“The loan deal demonstrates how the financial sector can play an active role in unlocking the potential of green tech innovations in the city,” Frank Fang, HSBC’s head of commercial banking for Hong Kong and Macau, said in a statement on Wednesday.

The loan comes after Hong Kong Financial Secretary Paul Chan Mo-po last week announced five initiatives to foster innovation and facilitate fundraising for projects with environmental benefits, as the government looks to transform Hong Kong into an international green technology and finance centre.

The HSBC branch on Pedder Street in Hong Kong. HSBC, like its international peers, has been challenged by climate activists for not doing enough for its loan portfolio to reach net-zero emissions. Photo: Elson Li

These initiatives include financial innovations and the provision of green projects certification to enhance the credibility of carbon-reduction activity, which is key for bankers making financing decisions.