“HSBC launches sustainability-linked derivative” –The Asset – March 24, 2021

On March 24, 2021 The Asset reported that “HSBC Korea has completed the trade of Asia’s first sustainability-linked derivative product, a two-year, structured US$100 million ESG-linked cross-currency swap for Hana Financial Investment.

The transaction offers direct incentives for Hana to improve its environmental, social and governance (ESG) capabilities as part of the bank’s efforts to support the development of South Korea’s sustainable finance market.

The product’s economic terms are directly linked to a specific ESG key performance indicator (KPI), with the achievement of the target by maturity enabling the firm to receive a premium payment or discount. In this case, the KPI involves the parent group’s ESG risk rating as set by Sustainalytics, a leading ESG rating company.”

You may read the article on The Asset internet site.