HSBC has announced a HK$150 million (US$19 million) green trade loan for Paul Y. Engineering Group (PYE) to support the construction of a 1224-place student residence at Wong Chuk Hang for the University of Hong Kong (HKU), a modular integrated construction (MiC) pilot project under the Hong Kong government’s development bureau.
The HKU MiC project meets the requirements under the green building certification – the Hong Kong Building Environmental Assessment Method – gold rating. The building is scheduled to be completed by June 2023.
Unlike traditional loans for construction projects, this green facility is structured as a service trade loan to meet PYE’s specific sourcing needs. The facility enables PYE to fund the HKU MiC Project flexibly as and when costs are incurred, while enhancing the project’s quality, safety and environmental performance.
“As one of the largest main contractors in Hong Kong, we are dedicated to promoting sustainable construction,” says James Lee, PYE’s chief executive officer. “The HKU MiC project is one of the first pilot projects to fully implement MiC in Hong Kong, and this serves as solid proof of our capability in sustainable construction.”
HSBC’s Terence Chiu, head of commercial banking, Hong Kong, notes: “Our customers are increasingly prioritising sustainability as a top criterion when making business decisions, and we expect this trend to accelerate – especially in the construction and real estate space. ”
The bank has pledged to provide US$100 billion of sustainable financing and investment globally by 2025. By the end of 2019, it has delivered US$52.4 billion.