Hong Kong lender BC Group launches green mortgage fund

“A lot of the loans we give are for new buildings, and they meet a green standard,” he said. The Australian Financial Review.

“It made sense to match the capital, which we can rate, with the mortgage, which is actually rated green.”

BC Group is backed by one of Asia’s largest developers, Hong Kong-listed Far East Consortium, as well as global investment house PAG and Metrics Credit Partners.

The Hong Kong financial platform initially specialized in non-resident mortgages, mainly to Chinese borrowers for properties in Australia and the UK, but is now rapidly expanding beyond that.

Last October, British Columbia entered into an agreement for a strategic partnership and long-term financial support with local non-bank lender, Mortgageport. Among his other recent wins, he launched into the UK market last year after securing a £255m ($480m) warehouse from Credit Suisse to fund buy-to-let mortgages to overseas investors. non-residents and raised a $500 million RMBS issue. in Australia last July.

The supply of green mortgage units – at a variable rate of 2.1% and 2.35% depending on class – comes amid both growing expectations that the official cash rate will rise this year and turmoil in the stock markets, sending some investors on the defensive. assets.

Mr Hinde said 94% of BC’s mortgage portfolio was secured by variable rate loans and that BC would review its rate of return every month.

“So when the rate cycle changes, our earnings change and the returns for investors change,” he said.