HSBC launches Green Deposits to help SMEs fund sustainability projects

HSBC has enriched its suite of green finance solutions with the roll-out of Green Deposits for businesses in Hong Kong. 

Commercial customers, in particular SMEs, can now include the sustainability agenda into their treasury activities with a simple and predictable deposit product, contributing to a greener and more resilient future. The pandemic has prompted Hong Kong businesses to rethink priorities and plan for more sustainable developments. Almost all Hong Kong companies (96%) believe a greater focus on sustainability will drive growth, with 46% expecting a modest growth of up to 5%; and 14% even seeing a growth of 10% or more.

Market expectation towards a sustainable operation is also at an all time high. According to another survey, close to 90% of Hong Kong individual respondents believe that companies have a moral duty to help create a sustainable future.

Available in HKD and USD with tenors of three months or above, the fixed-term Green Deposits carries minimum deposit threshold of HK$100,000 or US$20,000 for SMEs. 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.

“HSBC strives to help businesses across the city thrive through transition to low carbon emissions. The latest addition of Green Deposits to our comprehensive solutions represents our ongoing commitment in the climate agenda, supporting a wider spectrum of companies to go green. This in particular can benefit SMEs that might have limited financial resources to drive change," said Frank Fang, head of commercial banking, Hong Kong, HSBC.

The bank has been embedding sustainability into its products and services, including access to capital markets, lending, transaction banking, advisory services, and investments. It has also tailored lending solutions for companies of different sectors and sizes, including a lending programme that allows Hong Kong SMEs to earn cash rewards for cutting carbon emissions. It made market firsts in Hong Kong in the past two years with the issuances of green retail and institutional certificates of deposit.

"We are expanding our product capabilities to support companies in fulfilling their sustainability goals. The Green Deposits will enable corporate treasurers to use their surplus cash balances to fund environmentally beneficial projects and initiatives with themes such as renewable energy, sustainable waste management and climate change adaptation, giving them more flexible ways to participate in the sustainable finance market," added Yvonne Yiu, head of global liquidity and cash management, Hong Kong, HSBC. 

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