Sep 09, 2021 / 14:03

HSBC deploys first green deposit for businesses in Vietnam

The move is aimed at supporting the Vietnamese Government’s efforts and businesses in sustainable development.

HSBC Bank Vietnam has launched the very first green deposit for corporate clients in Vietnam, which is aimed at supporting corporate customers’ sustainability development strategy by ensuring their funding to be poured into green projects and businesses.

 The launch is also a part of HSBC’s global action plan until 2030 to support the global transition to a net-zero carbon economy. Photo: HSBC

“Our Green Deposit Program will enable our corporate clients who have excess cash to be able to indirectly provide funding to support projects that are environmentally beneficial, as these ‘green’ funds will be solely routed into ‘green’ investments”, said Tim Evans, CEO of HSBC Vietnam.

“These products and initiatives form part of HSBC Group’s ambitious plan to provide between US$750 billion and US$1 trillion in sustainable finance and investment towards a [global] net carbon zero transition,” he added.

Funds deposited through green deposits are used to finance environmentally beneficial projects through customer lending, which are aligned to the HSBC Green Bond Framework and Green Loan Principles, and under the eligible green project themes such as renewable energy, energy efficiency, or climate change adaptation.

Corporates can deposit their cash in both Vietnamese dongs and US dollars, with the term of at least three months. Quarterly, depositors will receive reports containing portfolio-level information regarding the use of deposited funds.

Along with green term loans and green trade loans, the green deposit will increase the diversity in HSBC Vietnam’s green product line which can fulfill customers’ various demands, simultaneously confirm HSBC’s capabilities in supporting the Vietnamese Government’s efforts and businesses in sustainable development.