OCBC’s sustainable finance portfolio hit $52 billion at the end of September 2023, surpassing the bank’s $50 billion target more than two years ahead of schedule. Outside of Singapore, OCBC Hong Kong is the largest contributor to the bank’s sustainable finance loan book, says Wang Ke, head of Greater China and CEO of OCBC Hong Kong.
More than 78% of Hong Kong’s carbon emissions can be attributed to the real estate and transportation sectors. Speaking at a May 29 briefing in Hong Kong, where OCBC unveiled a $1.5 billion investment into modernising its Greater China operations, Wang says OCBC is targeting the sectors “most in need of climate transition”.
According to Wang, OCBC structured inaugural solutions for some of the largest real estate conglomerates from as early as 2019.
In 2022, the bank issued Hong Kong’s first sustainability-linked loan for the logistics sector, acting as the sole lender and sustainability advisor to Kerry Logistics Network, the largest international logistics company listed on the Hong Kong Stock Exchange.
In 2023, OCBC was involved in closing Hong Kong’s first green loan for a logistics centre development. The HK$8.8 billion ($1.52 billion) green loan to ESR Group Limited and Chinachem Group was among the largest of its kind in Hong Kong last year. The funds will be used to finance the construction of Kwai Chung Cold Storage Logistics Centre, Hong Kong’s largest cold storage facility to be built in 20 years.
See also: OCBC sustainable finance loan book hits $52 bil, breaking $50 bil target two years ahead of schedule
Also in 2023, OCBC extended an inaugural US$100 million ($134.95 million) green loan for China’s largest wind farm operator, Hero Asia Investment. The operator is part of China Longyuan Power Group, which itself belongs to the world’s largest power company by installed capacity.
OCBC group CEO Helen Wong stated in May 2023 that she will not increase the bank’s sustainable finance loan commitment target further. “This will become very business-as-usual to us; we will continue to grow our sustainable financing. If we continue to grow double-digits every year, whatever target you set becomes just a number to be beaten.”
OCBC set the $50 billion target in 2021 after surpassing its original targets of $10 billion by 2022 and $25 billion by 2025 ahead of time.
OCBC ended 2023 with sustainable financing loans that grew 29% y-o-y to $38.4 billion, against a total loan commitment of $56 billion.
As at March 31, OCBC’s sustainable financing loans has grown 34% y-o-y to $43.1 billion, against a total loan commitment of $60.5 billion.
Shares in OCBC closed 11 cents lower, or 0.80% down, at $14.39 on May 29.
Photo: OCBC
