HSBC doubles China transition credit facility to $8 billion

HSBC doubled its sustainability and transition credit facility for Chinese companies to $8 billion from $4 billion and said the original capacity is already fully committed.

The bank launched the $4 billion facility earlier this year to raise credit limits for mainland-based companies in clean energy and low-carbon sectors and speed approvals through a dedicated channel. The stated focus is projects involving overseas energy transition infrastructure and production facilities. Eligible sectors run from clean power and electrification of transport to data centers and artificial intelligence. HSBC said it is also extending support to international companies operating in the Chinese mainland. Pricing and tenor of individual credit lines were not disclosed.

For allocators assessing transition-credit exposure, HSBC is now committing balance-sheet lending to Chinese borrowers in clean power, transport electrification, data centers and artificial intelligence. Borrowers in those sectors get a larger credit limit and a faster approval from one bank.

Chaoni Huang, Asia head of sustainable finance and transition at HSBC, said: “We look forward to supporting more companies as they expand overseas and navigate their own transition in the Chinese mainland.” She added that the bank's global reach and market expertise make it “well placed” to pursue the opportunity.

The bank committed the first $4 billion within the same year it launched the facility. How quickly the second $4 billion is drawn is the next measure of demand.