Hong Kong has subsidised over 220 green and sustainable debt instruments with over US$71.5 billion in issuances, treasury chief Christopher Hui says

Government will continue to accelerate the development of Hong Kong into an international centre for green and sustainable finance, Hui tells event

The green and sustainable finance grant scheme provides subsidies to eligible bond issuers and loan borrowers to cover their bond issuance and external review expenses

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The total green and sustainable debt issued in Hong Kong, including both bonds and loans, increased by more than 40 per cent from 2021 to US$80.5 billion last year. Photo: Reuters

Published: 7:30pm, 12 May 2023

Hong Kong has approved grants for green and sustainable finance debt instruments with underlying issuances worth more than US$71.5 billion as of the end of March, as part of the government’s push to accelerate the city’s development as an international centre for green and sustainable finance, according to Secretary for Financial Services and the Treasury, Christopher Hui Ching-yu.

Grants have been approved for more than 220 related debt instruments issued in Hong Kong since the launch of a scheme to support green and sustainable bond issuances and lending in the city in May 2021, Hui said in a keynote speech in a video at the Asia Summit on Green Economy organised on Friday by the non-profit Business Environment Council and consultancy firm Arup.

“We are all aware that promoting the green economy for sustainable development is a subject of global concern,” Hui said. “Hong Kong, a vibrant and resilient international financial centre, is uniquely positioned to play a leading role in green finance.”

The green and sustainable finance grant scheme, announced in Financial Secretary Paul Chan Mo-po’s budget speech in February 2021, is a three-year programme that provides subsidies to eligible bond issuers and loan borrowers to cover their bond issuance and external review expenses.

Secretary for Financial Services and the Treasury, Christopher Hui Ching-yu. Photo: Xiaomei Chen

The scheme provides grants of up to 50 per cent for bond issuance expenses of up to HK$2.5 million (US$318,793) and external review costs of up to HK$800,000 per instrument, according to a guideline issued by the Hong Kong Monetary Authority, the administrator of the scheme.