Bank of China Hong Kong (BOCHK) executed its first six-month HK$500 million green repo transaction with Crédit Agricole CIB acting as the green structuring adviser and counterparty on the transaction.

“Through this green cross-currency repo transaction, a non-green US-denominated bond was collateralised to the counterparty, and the Hong Kong dollar fund obtained was linked to a green loan of the bank to support sustainable building projects,” says Wilson Wong, chief dealer of investment management, BOCHK. “Repo transaction has always been one of the major financing tools in the financial market. With the growing awareness of sustainable development, there has been an increasing demand for green financing products.”

“It is expected that green repo transactions will gradually gain popularity in the market,” he adds. “The bank will continue to promote the development of green and sustainable transactions while exploring more diversified green financial solutions, so as to contribute the development of a green and sustainable finance market.”

Sustainable development is one of the bank’s core strategic goals.