The Government today announced the successful offering of US$2.5 billion of green bonds under the Government Green Bond Programme.
The offering, comprising US$1 billion 5-year, US$1 billion 10-year and US$500 million 30-year green bonds, will build a comprehensive benchmark curve for potential issuers in Hong Kong and the region.
The 30-year tranche is also the first 30-year green bond to be issued by an Asian government, and the longest tenor to be issued by the Hong Kong Special Administrative Region Government.
Orders were received from a diverse group of conventional and green investors, and 65% of the total issuance size was distributed to Asia, 20% to Europe and 15% to the US.
By investor type, 34% was distributed to banks, 46% to fund managers, private banks and insurance companies, and 20% to central banks, sovereign wealth funds and supranationals.
Proceeds raised under the programme will be used to fund projects that will improve the environment and facilitate the transition to a low carbon economy.
Financial Secretary Paul Chan said the successful offering demonstrates investor confidence in Hong Kong’s long-term credit strengths and economic fundamentals.
“The issuance will help catalyse further growth of the green and sustainable bond market, particularly leveraging on Hong Kong’s strengths as a leading green finance hub in the region.”
The green bond is expected to be settled on February 2 and listed on the Hong Kong Stock Exchange and the London Stock Exchange.