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Chinese firms seeking ESG loans look to HK

Mainland companies have reportedly now turned to Hong Kong for ESG loans, helping offset the sluggishness in the city's overall loan market. According to data compiled by Bloomberg, Chinese companies obtained USD6.7bn of so-called sustainability-linked loans (SLL) last year. Nearly 40% of the facilities were syndicated in Hong Kong. According to reports, two SLLs signed by Chinese corporates this year, involving ESR Cayman and Haier Group, were syndicated in Hong Kong. That is also expected for a coming deal from Syngenta Group, anticipated to be one of Asia's biggest-ever ESG loans. Hong Kong has been working to establish itself as a top green-finance locale. The government is currently selling its first retail green bond, a deal potentially as large as HKD20bn.

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