Innovating in the social bond market
Crédit Agricole CIB supported Hong Kong Mortgage Corporation Limited, a wholly-owned subsidiary of the Hong Kong Monetary Authority (HKMA) Foreign Exchange Fund, in the issuance of the first ever dual-tranche Hong Kong dollar (HKD) and offshore renminbi (CNH) social bond. This first-of-its-kind social bond consists of a 2-year HKD 8 billion tranche and a 3-year CNH 3 billion tranche.
It will finance or refinance loans under the special 100% SME financing guarantee scheme, helping to ease the cash flow pressure on small and medium-sized enterprises in Hong Kong during the health crisis, and minimise bankruptcies and layoffs.
The future of responsible lending is about taking advantage of sustainability practices. This requires strategic decision-making and the use of more environmentally and socially appropriate products. We are confident that this collaboration between Crédit Agricole and Annapurna will help both organisations achieve positive results in terms of sustainable development.
