Green and Sustainability related Loan
Bank of China (Hong Kong) Limited (“BOCHK”) offers various green finance products and services to promote green and sustainability development. We collaborate with all the stakeholders in the society to combat the challenge of climate and environmental change by promoting the transition of the economy towards low-carbon and sustainable development.
BOCHK provides green and sustainability related loans to support eligible green and social projects, as well as transition projects that encourage corporates to achieve their ambitious ESG goals.
Why choose green finance
- Improve the brand value: Corporate branding on sustainable development and environmental protection can be established through green financing.
- Broaden the range of potential investors: Attract investors that value sustainability and social responsibility.
- Encourage corporate transformation and accelerate the development of green economy: Maintain business sustainability, explore new market, mitigate the impact of climate change, support the sustainable long-term growth and profitability.
- Comply with government regulatory and policy objectives.
Target customer: Corporates from all industries
Application requirements: Loan application should fulfill the green and sustainability related principles (such as Green Loan Principles (GLP) , Sustainability Linked Loan Principles (SLLP) ).
Loan type: term loan, revolving loan
Common green and sustainability related loan types
Green loans
Green loans are the loans that made available exclusively to finance or re-finance, in whole or in part, new and/or existing eligible Green Projects. Green loans must align with the four core components of the Green Loan Principles1and the broad categories of eligible green projects can be found in the latest version of Green Loan Principles1.
Referring to Green Loan Principles, the Indicative Categories of Eligibility for Green Projects, include, but are not limited to:
| Category | Example | |
| 1 | Renewable energy | Including production, storage systems, transmission, appliances and products |
| 2 | Energy efficiency | Such as in new and refurbished buildings, district heating, smart grids, appliances and products |
| 3 | Pollution prevention and control | including reduction of air emissions, greenhouse gas control, soil remediation, waste prevention, waste reduction, waste recycling and energy/emission-efficient waste to energy |
| 4 | Environmentally sustainable management of living natural resources and land use | Including environmentally sustainable agriculture; environmentally sustainable animal husbandry; climate smart farm inputs such as biological crop protection or drip-irrigation; environmentally sustainable fishery and aquaculture; environmentally sustainable forestry, including afforestation or reforestation; preservation or restoration of natural landscapes; eco-tourism; and sustainable traceability mechanisms |
| 5 | Terrestrial and aquatic biodiversity restoration, conservation and enhancement | Including for coastal, marine and watershed environments as well as urban ecosystems |
| 6 | Clean transportation | Such as electric, hybrid, public, rail, non-motorised, multi-modal transportation, infrastructure for clean energy vehicles and reduction of harmful emissions |
| 7 | Green technologies | Such as energy storage systems, carbon capture and green H2 |
| 8 | Sustainable water and wastewater management | Including sustainable infrastructure for clean and/or drinking water, smart irrigation and wastewater treatment |
| 9 | Climate change resilience and adaptation | Including nature-based solutions, investments to make infrastructure, urban spaces and communities more resilient to impacts of climate change, as well as information support systems, such as climate observation and early warning systems, sustainable urban drainage systems and river draining and other forms of flooding mitigation |
| 10 | Circular economy adapted products, production technologies, processes and business models | Such as the design, production and introduction of reusable, recyclable and refurbished materials, components and products; circular business models, tools, services and practices; and/or certified eco-efficient products |
| 11 | Green buildings | Green buildings that meet regional, national or internationally recognised standards or certifications for environmental performance |
1 Green Loan Principles: Jointly published by APLMA, LMA & LSTA
Sustainability Linked Loan
Based on Sustainability Linked Loan Principles2, sustainability linked loans are the loans that incentivize corporate’s achievement of ambitious, predetermined sustainability performance objectives. The corporate’s sustainability performance can be assessed through the predefined Key Performance Indicators (KPIs) and Sustainability Performance Targets (SPTs).
KPIs shall be closely aligned with the company’s core sustainability and business strategy, while SPTs are used to assess the achievement of corresponding KPIs. The setting of SPTs shall be ambitious.
Corporates that are going to obtain sustainability linked loans should clearly communicate with the bank on the rationale of KPIs selection and SPTs setting. Corporates are also encouraged to disclose to bank the corporate’s sustainability standards or the certifications to which they are seeking to conform.
2 Sustainability Linked Loan Principles: Jointly published by APLMA, LMA & LSTA
Green Finance Advisory
BOCHK proactively involves into the promotion and development of green finance advisory. BOCHK supports corporates to accelerate their green transitions by assisting them on the development of the tailor-made green finance framework.
Green financial market undergoes blooming development under the promotion of global policymakers and sustainability risk management, banks and investors tends to invest more on green and sustainability related projects.
BOCHK, as a corporate green advisor, provides support to corporates on developing and promoting sustainable business model and assists corporates to design green finance framework.
We assist corporate to select green projects, setup the guideline on the use of proceeds, and design the green loan framework under and comply with the international standards such as ‘Green Loan Principles’, ‘Green Bond Principles’, as well as coordinate with verification by the external reviewers. The verified green finance framework is useful for corporate financing on green projects.
General Terms:
The above products, services and offers are subject to the relevant terms.
For further enquiry, please contact your relationship manager.
Reminder: To borrow or not to borrow? Borrow only if you can repay!
Terms and conditions：
Corporate Customer shall provide a green assessment or certification by a qualified assessment organization. BOCHK will review and update the list of qualified assessment organisations at any time without prior notice. BOCHK reserves the sole discretion about the Offer.
Corporate Customer shall provide BOCHK with the green assessment or certification before drawdown of the term loan.
The above products, services and promotional offers are subject to the relevant terms and conditions of BOCHK. For more details, please contact BOCHK staff. BOCHK reserves the right to amend, suspend or terminate the above products, services and offers, and amend their relevant terms and conditions at any time at its absolute discretion. In case of any dispute, the decision of BOCHK shall be final.
BOCHK reserves the right to approve and reject the loan application at its absolute discretion. The actual loan amount, interest rate, handling fee and applicable terms and conditions are subject to BOCHK final approval. Should there be any discrepancy between the English and Chinese versions of this promotion material, the Chinese version shall prevail.
For further enquiry, please contact your relationship manager.
