Hong Kong raises record US$6 billion from green bond offering as city pushes ahead with its sustainable finance hub ambitions
- Combined offering of green bonds in US dollar, euro, offshore yuan topped previous record of US$5.75 billion multicurrency deal in January
- Financial Secretary Paul Chan said investor enthusiasm for the offering shows their recognition of the city’s sustainable development efforts
Hong Kong has made its biggest green bond issuance, raising US$6 billion in a multicurrency deal as part of the government’s push to establish the city as an international green financing hub.
The offering included dollar bonds worth US$2.25 billion maturing in three, five and 10 years, €1.5 billion (US$1.6 billion) of four- and nine-year tranches and 15 billion yuan (US$2.2 billion) of two-, five- and 10-year notes.
The sale topped the city’s US$5.75 billion multicurrency green bond offering in January, which was the largest environmental, social and governance bond issuance in Asia at the time.
The offering has been well received and attracted close to US$30 billion in orders from a wide spectrum of investors, according to a statement on Thursday evening by the Hong Kong Monetary Authority, which acted as the government’s representative in the offering.
“The enthusiasm for Hong Kong green bonds from global investors shows their recognition of Hong Kong’s efforts in green and sustainable development,” said Financial Secretary Paul Chan Mo-po in a statement on Thursday.
“The offering has included our first 10-year RMB green bond, which helps to extend the offshore RMB yield curve and continues to enrich offshore RMB product offerings, promoting RMB internationalisation in an orderly manner,” said Chan. “We will continue to regularly issue green bonds to promote innovation and further development of the market.”
The green bonds are expected to be settled on June 7, and listed on the Hong Kong stock exchange as well as the London Stock Exchange, according to the HKMA.