Hang Seng Bank has delivered a green receivables financing solution for Leo Paper Group, with an export credit insurance provided by Hong Kong Export Credit Insurance Corporation (HKECIC) that supports greater supply-chain sustainability.

This green financing arrangement, which breaks new ground in Hong Kong’s sustainable finance space, will be used by Leo Paper to purchase wood from suppliers that source material from Forestry Stewardship Council-certified forests in support of the company’s efforts to reduce its carbon emissions and grow its sustainable supply-chain network.

“We are expanding our support for customers that are seeking to operate and grow their businesses in line with good ESG [environmental, social and governance] principles,” says Donald Lam, the bank’s head of commercial banking. “This financing arrangement serves as a good example of how innovation and collaboration can help drive improved environmental performance in the business community.”

Terence Chiu, HKECIC commissioner, adds: “This first green export credit insurance 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 a premium discount to alleviate the relevant insurance expense for export trade.”