The Bank of China (Hong Kong), or BOCHK, building (center) is seen between other commercial buildings in Hong Kong on July 16, 2020. ( ANTHONY WALLACE / AFP)

Bank of China (Hong Kong), the biggest mortgage lender in the Hong Kong Special Administrative Region, launched on Wednesday its maiden home loan plan for new flats certified for green features and joined with Sino Land to provide loans for four projects.

Borrowers will apply online, helping to reduce the carbon footprint and will be eligible for an extra cash reward of HK$6,888 ($884) before Dec 31. The loan must be drawn down on or before June 30, 2022.

The loan must be drawn down on or before June 30, 2022, and its tenure is 30 years

The loan tenure is 30 years. For a loan of up to HK$3 million, a borrower would pay HK$12,050 a month, assuming the bank’s Hong Kong dollar prime rate is 5.125 percent. The handling fee is 0.5 percent of loan amount, subject to a minimum HK$1,000.

BOCHK announced that the “green mortgage plan” will be available for Sino Land developments, Grand Central in Kwun Tong, Grand Victoria in Kowloon, One Soho in Mong Kok, and Silversands in Ma On Shan. These have received provisional BEAM Plus Platinum or Gold ratings. 

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The commercial lender is the city’s leading home mortgage bank. Lending to individuals increased by HK$42.63 billion, or by 10.4 percent, largely from residential mortgage loans, in 2020, data from the annual report show.

BOCHK continues to integrate sustainable development into its business development strategy and daily business operations. 

It launched the Home Expert mobile application for online mortgages and has introduced other green financial products, including the “Sustainable and Smart Living” themed green bonds, “SME Green Financing Incentive Scheme,’’ and green time deposit schemes, as well as green advisory and certifications. 

BOCHK also lists other projects eligible for “green” home loans, including the Henley I and II in Kai Tak by Henderson Land.

Bank of China (Hong Kong) announced that the “green mortgage plan” will be available for Sino Land developments, Grand Central in Kwun Tong, Grand Victoria in Kowloon, One Soho in Mong Kok, and Silversands in Ma On Shan

Mary Lo, general manager of the personal digital banking product department of BOCHK, said borrowers can submit mortgage applications, upload documents as well as manage their bills online.

“It is estimated that in the life cycle of each plan, it helps save around 900 pieces of paper, equivalent to 0.02 tons of carbon emission reduction. We will continue to extend this plan to other certified green buildings in an effort to promote the transition to a low-carbon and sustainable economy.”

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Lo said BOCHK remains committed to aligning with environmental, social and governance (ESG) principles by enriching its green financial services.

Developer Sino Group said it is committed to achieving BEAM Plus certification and WELL certification for all new buildings in Hong Kong.

Thomas Tang, the executive director and group chief financial officer, said the “Sustainability Vision 2030” announced last year “further highlighted commitments to introduce sustainable elements into the design, construction, and operation of our property developments.”

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BEAM Plus is an assessment tool by the Hong Kong Green Building Council. It provides performance criteria for sustainability issues related to planning, design, construction, commissioning, fitting out, management, operation and maintenance of a building.

The council says buildings account for 90 percent of electricity consumption or 60 percent of carbon emission in Hong Kong.