Hang Seng Bank : Provide Ground-breaking Green Financing for Leo Paper with HKECIC’s First Innovative Green Export Credit Insurance (3 April 2023)

3 April 2023

Hang Seng Provides Ground-breaking Green Financing Solution for Leo Paper

with HKECIC's First Innovative Green Export Credit Insurance

Hang Seng Bank ('Hang Seng') has delivered an innovative green receivables financing solution for its long-term customer, Leo Paper Group ('Leo Paper'), with an export credit insurance provided by Hong Kong Export Credit Insurance Corporation ('HKECIC') that supports greater supply chain sustainability. This first-of-its-kind green financing arrangement breaks new ground in Hong Kong's sustainable finance space.

The financing will be used by Leo Paper to purchase wood from suppliers that source material from Forestry Stewardship Council-certified forests. This will support Leo Paper's efforts to reduce its carbon emissions and grow its sustainable supply chain network.

Donald Lam, Head of Commercial Banking at Hang Seng, said: "Hang Seng is committed to improving ESG performance and facilitating the transition to a low-carbon economy. With considerable expertise in sustainable and green financing, we are actively expanding our support for customers that are seeking to operate and grow their businesses in line with good ESG principles. We are delighted to be working with HKECIC to assist Leo Paper in its efforts to integrate sustainability more fully into its operations and supply chain. This ground-breaking financing arrangement serves as a good example of how innovation and collaboration can help drive improved environmental performance in the business community."

Samuel Leung, Chairman of Leo Paper Group, said: "We appreciate very much the support of HKECIC and Hang Seng for enabling Leo Paper to become the first enterprise in Hong Kong to be eligible for the green export credit insurance. As a responsible enterprise embracing the sustainable development principle, we are committed to reducing carbon emission, implementing green production and green export trade. This partnership not only provides better export credit insurance protection and lower our premium expense, but also encourages us to further enhance our green supply chain construction, making a greater contribution to promote green economy and sustainable development."

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Terence Chiu, Commissioner of HKECIC said, "In view of the increasingly serious global warming and greenhouse effect, it is necessary for all sectors of society to work together to reduce carbon emissions. HKECIC has always been committed to supporting environmental protection and promoting green economy. This first green export credit insurance, in collaboration with Hang Seng Bank, is a new ESG initiative based on Leo Paper's efforts in incorporating green elements into the export trade supply chain, which help reduce carbon emissions. In addition to providing credit insurance protection for the green export trade, HKECIC offers premium discount to alleviate the relevant insurance expense for export trade so as to make contribution to achieving carbon reduction and other environmental goals, promoting sustainable development and creating a low-carbon future."

To help ensure a more sustainable future, Hang Seng aims to reduce carbon emissions from its own operations to net zero by 2030. The Bank offers a diverse range of green financing and ESG-themed products that can be tailored to meet customers' specific sustainability objectives, and will continue to develop more banking and finance solutions with green and sustainable features.

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Hang Seng Provide Ground-breaking Green Financing for Leo Paper with HKECIC's First Innovative Green Export Credit Insurance / 3

Photo Caption:

Photo 1

Hang Seng Bank has delivered an innovative green receivables financing solution for its long-term customer, Leo Paper Group, with an export credit insurance provided by Hong Kong Export Credit Insurance Corporation that supports greater supply chain sustainability. Pictured: Donald Lam, Head of Commercial Banking at Hang Seng Bank (second left); Margaret Lou, Head of Corporate Banking of Hang Seng Bank (first left); Samuel Leung, Chairman of Leo Paper Group (second right); King Lai, Group CFO of Leo Paper Group (first right) and Terence Chiu, Commissioner of Hong Kong Export Credit Insurance Corporation (middle).

Hang Seng Provide Ground-breaking Green Financing for Leo Paper with HKECIC's First Innovative Green Export Credit Insurance / 4

About Hang Seng Bank

Hang Seng Bank is celebrating its 90th anniversary this year. Founded in 1933, Hang Seng Bank has continually innovated to provide best-in-class,customer-centric banking, investment and wealth management services for individuals and businesses. It is widely recognised as the leading domestic bank in Hong Kong, currently serving more than 3.5 million customers.

Combining its award-winning mobile app and strong digital capabilities with a vast network of over 260 service outlets in Hong Kong, Hang Seng offers a seamless omni- channel experience for customers to take care of their banking and financial needs anytime, anywhere.

Its wholly owned subsidiary, Hang Seng Bank (China) Limited, operates a strategic network of outlets in almost 20 major cities in Mainland China to serve a growing base of Mainland customers locally and those with cross-boundary banking needs. The Bank also operates branches in Macau and Singapore, and a representative office in Taipei.

As a homegrown financial institution, Hang Seng is closely tied to the Hong Kong community. It supports the community with a dedicated programme of social and environmental initiatives focused on future skills for the younger generation, sustainable finance and financial literacy, addressing climate change and caring for the community.

Hang Seng is a principal member of the HSBC Group, one of the world's largest banking and financial services organisations. More information on Hang Seng Bank is available at www.hangseng.com.