In a first, Hong Kong to issue green bonds worth US$768 million to city’s retail investors
- The bonds, which will have a tenor of three years, guarantee a minimum payment of 2 per cent
- Hong Kong identity card holders will be able to subscribe in HK$10,000 increments starting March 1
Hong Kong will issue retail green bonds worth up to HK$6 billion (US$768.8 million) beginning March 1, allowing residents to participate in the sustainable development of the city, the government said on Tuesday.
The bonds, which will have a tenor of three years, will make an interest payment every six months based on the average rate of the consumer price index over that half-year period, with a guaranteed minimum payment of 2 per cent.
Hong Kong identity card holders will be able to subscribe in HK$10,000 increments at placing banks, securities brokers or the Hong Kong Securities Clearing Company beginning at 9am on March 1, Edmond Lau Ying-pan, deputy CEO of the Hong Kong Monetary Authority, said during a media briefing on Tuesday afternoon.
The subscription period will run through 2pm on March 11, with the bonds being issued on March 22 and listing on the Hong Kong stock exchange the next day.
The bonds will allow residents to “directly contribute to greening Hong Kong and share the fruit of the sustainable development of Hong Kong through participating in the green and sustainable finance market”, Financial Secretary Paul Chan Mo-po told the briefing.