The Hong Kong Monetary Authority (HKMA) signed a Memorandum of Understanding (MOU) with the International Finance Corporation (IFC), a member of the World Bank Group, today in Washington DC, to co-organise IFC’s Sixth Annual Climate Business Forum, which will be held in Hong Kong in early 2020.
The Forum brings together global policymakers and finance leaders to share knowledge and expertise on growing climate business investment in emerging markets. This collaboration signifies HKMA’s commitment in partnering with thought leaders such as the IFC in promoting Hong Kong as an international hub for green finance.
The signing, during the World Bank Group’s annual Spring Meetings, adds to the HKMA’s commitments towards green finance. In addition, the Hong Kong Mortgage Corporation Limited (HKMC), wholly owned by the Hong Kong SAR Government through the Exchange Fund managed by the HKMA, and IFC recently entered into a Master Cooperation Agreement (MCA) to promote infrastructure financing. The MCA serves to streamline the steps taken when both sides co-finance infrastructure projects by standardising the investment process and documentation.
“This continuing partnership with institutional investor HKMA supports IFC’s aim to share our expertise and the opportunities available for investing in developing markets,” said Philippe Le Houérou, IFC CEO at the signing ceremony. “Together with the HKMA, we look forward to accelerating green growth in emerging markets.”
Norman Chan, Chief Executive of the HKMA, said, “We welcome the opportunity to work together with IFC in co-organising the Climate Business Forum in Hong Kong. We are also very pleased to further our collaboration with IFC, which has been a trusted partner of the HKMA in credit investments across emerging markets.” He added, “Like IFC, the HKMA is dedicated to supporting responsible investment and green finance. The HKMA has incorporated environmental, social, and governance (ESG) principles into the investment processes of the Exchange Fund. The ESG principles of unveiling the long-term sustainable value of investments for investors are well in line with the established principle of the Exchange Fund in pursuing a long-term stable return.”
Mobilising private capital into emerging markets is critical to IFC’s mandate of supporting economic development through private-sector growth. Innovative syndications platforms like the Managed Co-Lending Portfolio Program and standardised investor approaches like the MCA create new pathways for emerging-market companies to access significant new pools of capital to grow their businesses. The MCA has over 30 signatories and has supported more than US$16 billion in parallel lending for IFC borrowers since 2009.
IFC—a sister organisation of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2018, we delivered more than US$23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
About the HKMA
The HKMA is the government authority in Hong Kong responsible for maintaining monetary and banking stability. It was established in April 1993 by merging the Office of the Exchange Fund and the Office of the Commissioner of Banking.
The HKMA’s policy objectives are:
• To maintain currency stability within the framework of the Linked Exchange Rate System;
• To promote the stability and integrity of the financial system, including the banking system;
• To help maintain Hong Kong’s status as an international financial center, including the maintenance and development of Hong Kong's financial infrastructure; and
• To manage the Exchange Fund.
About the HKMC
The HKMC, established in 1997, is wholly-owned by the Hong Kong SAR Government through the Exchange Fund. Operating on prudent commercial principles, the HKMC strives to promote stability of the banking sector, wider home ownership, as well as development of the local debt market and retirement planning market.
To further its mandates on promoting banking sector stability and local debt market development, the HKMC commenced the implementation of the Infrastructure Financing and Securitisation business in 2019, with the aims to fill the infrastructure financing market gaps, facilitating infrastructure investment and financing flows; and to help consolidate Hong Kong’s position as an infrastructure financing hub, benefitting financial and professional service sectors.
Hong Kong Monetary Authority
International Finance Corporation
12 April 2019
Mr Philippe Le Houérou, IFC CEO (left) and Mr Norman Chan, Chief Executive of the HKMA (right) sign and exchange a Memorandum of Understanding in Washington DC, under which the IFC and the HKMA will co-organise the IFC’s Sixth Annual Climate Business Forum.