ESG Post

Sustainable Finance

Hang Seng Bank launches $10.2bn fund to support green transition

Hong Kong’s Hang Seng Bank has launched an HKD 80 billion ($10.2 billion) Sustainability Power Up fund, offering diversified green and sustainable financing solutions for businesses of various types and sizes. The fund adheres to the ‘Green Loan Principles’, ‘Social Loan Principles’, and ‘Sustainability Linked Loan Principles’. It includes new green equipment financing, social loans, and sustainability-linked loans to encourage enterprises to reduce carbon emissions actively.

Recognising the high costs associated with green certification for accessing sustainable financing, Hang Seng has partnered with the Hong Kong Quality Assurance Agency (HKQAA) to introduce the SME Green Equipment Financing Assessment platform exclusively for Hang Seng’s commercial customers. This platform reduces assessment fees for green equipment financing by over 90% and simplifies the assessment process, making it more accessible and affordable for small and medium-sized enterprises (SMEs).

Additionally, Hang Seng has introduced the Green and Sustainable Financing Assessment Subsidy programme to further incentivise carbon reduction. Businesses that obtain qualified green and sustainable certifications from the HKQAA or other recognised external assessment agencies are eligible for cash rebates on assessment fees when financing with Hang Seng, with a maximum rebate of HKD 200,000 ($25,618). This programme is available to enterprises applying for loan amounts below HKD 100 million ($12.8 million).