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Hong Kong’s retail green bonds attract ‘record’ number of subscribers, subscription amounts amid ‘uncertainty in the local stock market’

  • The total subscription amount received by BOCHK for the notes exceeded ‘bank’s record last year’, executive says
  • Government says the subscription amount totalled about HK$30.20 billion (US$3.85 billion) with about 323,000 applications received

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The bonds are set to be issued on October 10 before listing on the Hong Kong stock exchange the next day. Photo: Winson Wong
Mia Castagnone

Hong Kong’s latest offering of retail green bonds has logged a “record” number of subscribers as well as record subscription amounts, as Hong Kong investors turn towards a safer investment option in a struggling stock market, banks managing the issuance said.

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The government, meanwhile, said the subscription amount totalled about HK$30.20 billion (US$3.85 billion) with about 323,000 applications received. The numbers were obtained from placing institutions, a government spokesperson said. The figures are preliminary estimates and the final figure might be adjusted.

The government 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. The HK$15 billion notes up for sale guarantee a minimum payment of 4.75 per cent, an increase from last year’s batch that yielded 2.5 per cent.
HSBC and Bank of China (Hong Kong) (BOCHK) were appointed co-arrangers for the retail issuance by the government. BOCHK said the notes proved to be attractive for its customers.

“The total subscription amount of BOCHK’s green retail bonds exceeded our bank’s record last year, and the average customer subscription amount increased by more than 30 per cent compared with last year,” said Joyce Leung Mei-yee, an assistant general manager at the lender.

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Green bonds are fixed-income financial products designed to fund projects that are environmentally friendly. The new notes, as well as other financing instruments launched under the government’s green bond programme, aim to enhance the government’s sustainable investment offerings and promote green finance.

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