Crédit Agricole CIB supports Gammon Construction Limited on implementing one of the First Green Guarantees in Asia-Pacific

This green guarantee, a HKD 170 million performance bond, will finance a major residential project in Hong Kong, built according to green practices.

Panorama of Kowloon peninsulaGammon Construction Limited (“Gammon”) and Crédit Agricole CIB are working together to implement one of the first green guarantees in Asia-Pacific, a HKD 170 million performance bond associated with a major residential project “New Kowloon Inland Lot No. 6564 at Kai Tak Area 1L Site 1” in Kai Tak, Kowloon (“Kai Tak residential project”) developed by Wheelock Properties (Hong Kong) Limited (“Wheelock Properties”). 

In June 2020, Gammon, being one of the first construction companies in Southeast Asia to embrace sustainability in their business and project operations, started the discussion with Crédit Agricole CIB to implement a green guarantee, an innovative trade finance product.

To satisfy the requirements of this green guarantee, Wheelock Properties’ Kai Tak residential project needs to be delivered with a BEAM Plus Gold rating, a comprehensive certification standard for green properties.

To achieve the BEAM Plus Gold rating (Version 1.2), Gammon is delivering the project with practices in construction that will reduce the environmental impacts of the building, improve environmental quality and user satisfaction. The Gammon project team will fulfill requirements for the construction phase of the project related to: 

  • Environmental management including waste, air, noise, and water pollution control 
  • The use of sustainable and regional materials and timber in temporary works 
  • Improving the microclimate around and air quality within the building. 

In addition to delivering a green building project, the team has also used a mass battery storage system, called the Enertainer, to reduce noise, air pollution and carbon emissions on site. They have integrated energy saving initiatives and renewable energy use into the site offices and they have adopted precast façade units and aluminum system formwork for typical floors instead of timber to reduce waste and resource use.

Patricia Or, Executive Director of Gammon Construction Limited, said “Gammon is proud to be among the pioneers of green finance in construction. As a company with a firm commitment to sustainability, we believe green finance can help accelerate greener performance and lower carbon emissions in the Hong Kong construction industry.”.

Ricky Wong, Managing Director of Wheelock Properties (Hong Kong) Limited, added “We are dedicated to engaging with environmentally responsible contractors to reduce our environmental footprint and to advance the green built environment. Many congratulations to Gammon, our Kai Tak residential project (NKIL 6564) key partner, who pioneers green finance in the construction sector, serving as a good testament to their commitment to promoting green buildings in Hong Kong.”.

François Martin, Chief Executive Officer of Crédit Agricole CIB Hong Kong branch, commented “From an ESG perspective, banks have traditionally focused on products like long term debt or project finance. Now is the ripe time for industrial players to set the benchmark and best practices for green trade finance instruments. Crédit Agricole CIB, being a global leader in Sustainable Finance, is honoured to support Gammon and Wheelock on this innovative transaction, and accompany them on their ongoing green journey.”.