Two women check photos they have taken in Tsim Sha Tsui, Hong Kong, as the setting sun shines from behind the International Finance Centre (IFC) tower on Jan 2, 2023. (PHOTO / CHINA DAILY)
HONG KONG – The Hong Kong Special Administrative Region government has successfully offered green bonds worth about $6 billion, attracting a wide spectrum of investors with close to $30 billion equivalent in orders.
The bonds are denominated in the US dollar, euro and RMB. In particular, the renminbi tranches were expanded from a combined 10 billion yuan ($1.4 billion) from the January 2023 issuance to 15 billion yuan this time, with the additional issuance of a new 10-year RMB tranche.
The green bonds have been assigned credit ratings of AA+ by S&P Global Ratings and AA- by Fitch, according to the Hong Kong Monetary Authority.
The green bonds have been assigned credit ratings of AA+ by S&P Global Ratings and AA- by Fitch, according to the Hong Kong Monetary Authority
Paul Chan Mo-po, financial secretary of the HKSAR government, said the enthusiasm for Hong Kong green bonds from global investors demonstrates their recognition of Hong Kong's efforts in green and sustainable development.
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The offering has included the first 10-year RMB green bond, which helps extend the offshore RMB yield curve and continues to enrich offshore RMB product offerings, promoting RMB internationalization in an orderly manner, Chan said.
The green bonds are expected to be settled on June 7 and listed on the Hong Kong Stock Exchange and the London Stock Exchange. Proceeds raised will be used to finance or refinance projects that provide environmental benefits and support the sustainable development of Hong Kong.
The deal is the second green bond offering from the SAR this year after it sold green bonds in the three currencies in January, raising $5.75 billion. According to media reports, Hong Kong has hired banks for what would be the government’s third green-debt sale this year, part of the city’s push to be a sustainable-financing hub.
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The Government Green Bond Programme is an initiative of the HKSAR government to promote the development of green finance, especially the green bond market, in Hong Kong.