Hong Kong marketing second green bond, key part of push to be Asia’s sustainable financing hub
- Hong Kong’s government announced plans to issue up to HK$100 billion in green bonds in 2018
- Green and sustainable financing opportunities could top US$29 trillion globally in the next decade
Hong Kong’s government began marketing its second US dollar-denominated green bond on Tuesday as the city seeks to bolster its status as an international centre for sustainable financing – a market that could top US$29 trillion globally over the next decade.
Green bonds are fixed-income products designed to fund projects that are environmentally friendly.
The latest offering priced 5-year, 10-year and 30-year bonds at about 25, 40 and 65 basis points respectively over US Treasuries, after tightening from 50, 60 and 90 basis-point spreads in initial guidance, according to marketing materials seen by the Post.
Within hours of the books opening, the bonds had attracted more than US$15 billion of pledges from investors, according to a person familiar with the matter. The bonds could be priced as soon as Tuesday.