The US bank has issued its first ESG index-linked structured note to a private bank in Hong Kong in January and hedged an investment-linked policy (ILP) linked to the S&P ESG Global Macro Index in the second half of 2020.

Distributed by a large insurance company in Southeast Asia, the ILP deal marks J.P. Morgan’s inaugural hedge providing service for an ESG-linked structured product in Asia. The US bank provided the hedge via a call option linked to the S&P ESG Global Macro Index, which was launched in October 2019. ESG has finally picked up in Asia over the past couple of years -  Sim Ee Cheah Retail investors who have purchased the ILP will receive their investment in full plus a fixed coupon

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