Bank of China (Hong Kong) (BOCHK) executed its first three-month RMB 500 million ($72.76 million) green RMB reverse repo transaction with Crédit Agricole CIB acting as the counterparty of the trade.

Crédit Agricole CIB will use the funds to support its sustainable development projects.

Wilson Wong, general manager of Investment Management of BOCHK said, “Following the successful completion of our first green repo transaction last year, we conducted our first green reverse repo transaction, adding RMB to the trade as part of our continuing effort to drive financial innovation. The transaction involved receiving a nongreen US-denominated bond as collateral from the counterparty, which will use the RMB funds obtained to support our sustainable development projects. The transaction not only underscores our commitment to drive the innovation of offshore RMB green finance initiatives but also promotes the development of offshore RMB repo business. We will continue to enrich our green finance solutions to meet the diverse customer needs”.

Antoine Rose, head of Sustainable Investment Banking for Asia-Pacific and the Middle East of Crédit Agricole Corporate and Investment Bank said, “Crédit Agricole CIB is proud to collaborate with BOCHK on a new green repo transaction. With the market increasingly focusing on sustainability, it is crucial to develop appropriate solutions dedicated to financing sustainable assets. These two transactions demonstrate how Crédit Agricole CIB and BOCHK share the same ambition to grow with our clients through sustainable solutions”.

BOCHK is dedicated to enhancing its green financial products and services, as well as providing tailor-made green financing solutions such as green deposits, green loans, green mortgages, green insurance, green bond issuance and investment, as well as green advisory and certification services for its customers, with an aim to promote Hong Kong as an international green finance centre.

Re-disseminated by The Asian Banker