Bank of China (Hong Kong) (BOCHK) has executed its first three-month green renminbi reverse repurchase transaction amounting to 500 million yuan (US$72.5 million). Crédit Agricole Corporate and Investment Bank acted as the counterparty of the trade.
Following the completion of BOCHK’s first green repo transaction last year, the bank conducted the first green reverse repo deal, adding renminbi to the trade as part of its effort to drive financial innovation, says Wilson Wong, general manager of investment management at BOCHK.
The transaction involved receiving a non-green US dollar-denominated bond as collateral from Crédit Agricole CIB, which will use the RMB funds to support 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,” Wong says. “We will continue to enrich our green finance solutions to meet diverse customer needs.”
Antoine Rose, head of sustainable investment banking for Asia-Pacific and the Middle East at Crédit Agricole CIB, adds: “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 says it is committed to providing tailor-made green financing solutions such as green deposits, green loans, green mortgage, green insurance, green bond issuance and investment, as well as green advisory and certification services for its customers, with an aim of promoting Hong Kong as an international green finance centre.