Hong Kong to issue second batch of retail green bonds valued at US$1.91 billion, available to residents on September 18
- Hong Kong identity card holders will be able to subscribe in HK$10,000 increments to bonds that support public-works projects
- The size of the tranche may increase to a maximum of HK$20 billion, subject to market conditions, an official says
Hong Kong will issue its second batch of retail green bonds at a value of HK$15 billion (US$1.91 billion) in a continuing effort to give residents a chance to participate in the city’s sustainable development, the government said on Tuesday.
The bonds, with 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 4.75 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 September 18, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said at a media briefing on Tuesday afternoon.
“The government [has decided to] issue retail green bonds again this year so as to facilitate market development and at the same time, offer members of the community investment options with steady returns,” said Hui.
The new retail green bond, as well as other financing instruments launched under the government’s green bond programme, shows “the government’s commitment to combat climate change and promote green finance as well as to develop Hong Kong into a more sustainable and liveable city”, said Hui.