Crédit Agricole CIB advised the Urban Renewal Authority to publish its first Sustainable Finance Framework
As the Sole Sustainable Finance Structuring Advisor, Crédit Agricole CIB advised and supported Hong Kong’s Urban Renewal Authority (URA) to develop and publish its Sustainable Finance Framework.
The Framework will support the financings of URA’s sustainable projects in areas such as low-carbon buildings, affordable housing, public facilities, as well as employment promotion among small and medium enterprises or NGOs through its sustainable urban renewable strategy.
Collectively referred to as ‘Sustainable Finance Principles’, the Framework is developed and structured in accordance with the Green Bond Principles1, Social Bond Principles2 , Sustainability Bond Guidelines3 issued by the International Capital Markets Association, the Green Loan Principles4, Social Loan Principles5 jointly published by the Loan Market Association, the Asia Pacific Loan Market Association, and the Loan Syndications and Trading Associations.
Any sustainable financing instruments launched under the Framework will adhere to the four core components outlined in these guidelines, including the use of proceeds, project evaluation and selection process, management of proceeds, and reporting requirements.
Proceeds raised by the sustainable financing instruments will be fully used to finance and/or refinance the following eligible green and/or social projects, as defined under the Framework:
- Green categories:
- Green buildings – new buildings
- Green buildings – existing buildings
- Social categories:
- Affordable housing
- Socioeconomic advancement and empowerment
- Employment preservation and promotion of productivity
- Promotion of building rehabilitation in combatting urban decay
To promote the credibility and consistency of URA’s green economic activities and to demonstrate adherence to best market practices, the Framework incorporates an additional reference to the Hong Kong Taxonomy for Sustainable Finance6, published by the Hong Kong Monetary Authority.
URA has engaged Moody’s Ratings to provide a Second Party Opinion (SPO), affirming the Framework’s alignment with relevant Sustainable Finance Principles, and has been awarded an ‘SQS2 Sustainability Quality Score (Very Good)’ overall rating. This rating is the highest attainable score ever granted to a Framework for an Asia-Pacific Sovereign, Supranational and Agency (SSA) entity since Moody’s revised its SPO rating methodology in October 2022.
1ICMA Green Bond Principles (2021 Edition) (with June 2022 Appendix 1), https://www.icmagroup.org/assets/documents/Sustainable-finance/Translations/Chinese-GBP2021-06-030821.pdf
2ICMA Social Bond Principles, June 2023, https://www.icmagroup.org/sustainable-finance/the-principles-guidelines-and-handbooks/social-bond-principles-sbp
3ICMA Sustainability Bond Guidelines, June 2021, https://www.icmagroup.org/sustainable-finance/the-principles-guidelines-and-handbooks/sustainability-bond-guidelines-sbg
4LMA Green Loan Principles, February 2023, https://www.lsta.org/content/green-loan-principles
5LMA Social Loan Principles, February 2023, https://www.lsta.org/content/social-loan-principles-slp
6Hong Kong Taxonomy for Sustainable Finance, May 2024, https://www.hkma.gov.hk/media/eng/doc/key-information/guidelines-and-circular/2024/20240503e1.pdf Will open in a new tab
“Crédit Agricole CIB is honoured to be the sole Sustainable Finance Structuring Advisor to the Urban Renewal Authority. This milestone underscores URA’s commitment to supporting Hong Kong’s ESG journey. The attained rating also reflects the recognition of URA’s green and sustainable finance initiatives, which has a positive impact to the local community. Crédit Agricole CIB will continue to play various pivotal roles in supporting URA’s ambitions in the sustainable space.”
Edouard O'Neill
Chief Executive Officer, Hong Kong Branch, Crédit Agricole CIB
“The need for sustainably revitalising older districts of the historical city of Hong Kong is prominent, and this journey entails substantial environmental and social impact. Crédit Agricole CIB is honoured to have supported Urban Renewal Authority in setting this foundational, best-practice sustainable finance framework to facilitate its mandate to promote a sustainable and quality living environment for the people of Hong Kong.”
Carmen Tsang
Head of Sustainable Investment Banking for Greater China, Crédit Agricole CIB
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