Hong Kong’s first retail green bond offer to finally launch on April 26 after Covid-19 delay
- The government has more than tripled the maximum offer size to HK$20 billion (US$2.56 billion) for the three-year bond
- Interest will be paid every six months based on the inflation rate over that half-year period, with a guaranteed minimum payment of 2.5 per cent
The government had initially planned to sell HK$6 billion worth of green bonds from March 1, but it was delayed as infections started rising, reaching a peak of over 50,000 cases the same month. With cases trending lower, social-distancing restrictions, which have been in place for months, will be eased in phases from April 21.
“As the fifth wave of the epidemic gradually subsides, we are relaunching the subscription arrangement of the inaugural retail green bond,” Financial Secretary Paul Chan Mo-po said in a statement late on Thursday.
He said the increased offer size will help the government reach its bond issuance targets for the current and previous financial years, and also save costs and administrative work.
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Interest will be paid every six months based on the inflation rate over that half-year period, with a guaranteed minimum payment of 2.5 per cent, higher than the 2 per cent announced in February.
“Having considered the rising interest rates in the market, we have decided to increase the minimum interest rate of this retail green bond so as to provide the public with a green investment choice with a steady return,” Chan said.