The latest news in funds and investments from across Asia.

United Overseas Bank
United Overseas Bank, which announced its third-quarter results late last week, has unveiled a new “green loan” transaction, an example of the sort of environmentally-driven financing now making a noise in business.

The Singapore-based bank said that it has extended the loans under its new UOB Real Estate Sustainable Finance Framework. First to use the financing framework are Lucrum Capital and Teambuild Engineering & Construction, which together have secured S$140 million to finance the construction and operation of buildings in Singapore.

The Bank developed its UOB Real Estate Sustainable Finance Framework specifically for companies that own or manage real estate assets, such as data centres, hotels, industrial and residential properties, offices, restaurants and retail spaces.

The financing framework sets out the eligibility criteria, including sustainability strategy, objectives, ratings and performance targets, for companies to meet when applying for green loans or sustainability-linked loans. UOB said that this approach makes it easier for small- and medium-sized enterprises, which often have limited resources, to apply for sustainability-linked or green loans. 

Under the framework, UOB will record and monitor the borrower’s management of loan proceeds, as well as track the sustainability metrics as agreed with the company.

In Singapore, the Building Construction Authority has set a target for 80 per cent of buildings to be certified green by 2030.

HSBC Global Asset Management
HSBC Global Asset Management has launched a Chinese government local bond index fund, designed to tap into the Asian nation’s sector. The Ireland-domiciled fund tracks performance of the Bloomberg China Treasury and Policy Bank 9 per cent Capped Bond Index.

The HSBC Global Funds ICAV will be managed by HSBC Global Asset Management’s passive fixed income team, led by head of passive fixed income, Sebastien Faucher. The team manages around $6.9 billion of assets in different strategies.

“With global yields at historically low levels, investing in China onshore bonds can offer investors the yield premiums they are searching for. At the same time, our view is that this asset class is far less impacted by global risk sentiment, offering compelling diversification benefits,” Faucher, said.

“As China opens up its bond market to overseas investors, foreign ownership in its onshore government bonds and policy bank bonds has picked up to around 8 per cent and 3 per cent respectively and is expected to rise further in the coming months. This presents significant opportunities, and our China presence and expertise mean we’re ideally positioned to help investors seize them,” Faucher said.