China News Service, Hong Kong, November 18th. The Hong Kong Special Administrative Region Government announced on the 18th that it has successfully sold US$3 billion worth of green bonds (green bonds) in US dollars and euros under the government's green bond program.
There are three tranches of the green bond issuance: USD-denominated 10-year green bonds are issued with a value of 1 billion U.S. dollars, and euro-denominated 5-year and 20-year green bonds are 1.25 billion euros and 500 million euros, respectively.
Among them, the 20-year period is the longest issuance period of government-type euro green bonds in Asia so far. It is also the first euro bond issuance by the Hong Kong Special Administrative Region government, providing an important new benchmark for potential issuers in Hong Kong and the region.
This batch of green bonds sold under Regulation S will be held online on November 15 and 16, 2021, and will be priced on November 17. The 10-year US dollar bond yields 1.855%; the 5-year euro bond is 0.019%; 20-year Eurobond is 1.059%.
The Hong Kong Monetary Authority (HKMA) stated that despite recent market volatility, global investors have responded well to this batch of green bonds: 10-year US dollar bonds attracted more than US$2.9 billion in subscription amounts, and 5-year and 20-year euro bonds A total of more than 2.2 billion euros in subscription amount were attracted, which was able to keep the cost of capital at a very low level.
Financial Secretary Chen Maobo said that he is very pleased to see that the market has great demand for the Hong Kong Special Administrative Region Government’s green bonds. This fully highlights investors’ confidence in the tone of Hong Kong’s economy and their support for Hong Kong’s efforts to tackle climate change and achieve carbon neutrality. .
Through the first issuance of euro green bonds, Hong Kong can open up a new investor base, allowing them to pay more attention to Hong Kong's sustainable development process and financial opportunities, and further provide growth momentum for Hong Kong's financial market.
The green bonds were issued through the new global medium-term notes issuance plan set up for the issuance of green bonds at the beginning of this year. The bonds will be settled through the central clearing system of debt instruments of the Hong Kong Monetary Authority. It is expected to be settled on November 24, 2021. Listed on the Hong Kong Stock Exchange and the London Stock Exchange.
The bonds are rated AA+ by S&P Global and AA- by Fitch.
The HKMA is the representative of the Hong Kong Special Administrative Region Government that issued green bonds under the Government's Green Bond Program.
The funds raised in the plan will be allocated to the Capital Works Reserve Fund to provide funding for government projects that have environmental benefits and promote the sustainable development of Hong Kong.
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