The Hong Kong government announced on Friday the successful pricing of approximately HK$27.6 billion in green and infrastructure bonds under the Government Sustainable Bond Program and the Infrastructure Bond Program, denominated in Hong Kong dollars, yuan, US dollars, and euros.
The government said the green bonds and infrastructure bonds were priced on May 7, comprising HK$3 billion in 30-year infrastructure bonds at a coupon rate of 3.95 percent; 6 billion yuan (HK$6.9 billion) in 20-year infrastructure bonds at 2.60 percent; 6 billion yuan in 30-year infrastructure bonds at 2.70 percent; US$500 million (HK$3.9) in 5-year infrastructure bonds at 4.052 percent; and €750 million (HK$6.91 billion) in 8-year green bonds at 3.119 percent.
The government stated that the issuance attracted broad participation from global investors across more than 30 markets in Asia, Europe, the Middle East, and the Americas, recording total orders of around HK$239 billion equivalent, representing a subscription ratio of about 8.6 times, which was oversubscribed by around 7.6 times. Among them, the issuance size of the 30-year Hong Kong dollar bond was double that of last year's inaugural issuance, while the 20-year and 30-year long-tenor yuan bonds, first launched in 2024, continued to be well received by investors.
Financial Secretary Paul Chan Mo-po said the infrastructure bonds provide financing for key infrastructure projects, including the Northern Metropolis, thereby supporting economic development and people's livelihoods. The green bonds also support green and low-carbon transformation projects, reinforcing Hong Kong's position as a green and sustainable finance hub.
Chan added that the government continued to issue longer-tenor Hong Kong dollar and yuan bonds, increasing the issuance size to meet institutional investors' demand for long-tenor bonds while also promoting the development of Hong Kong's fixed-income and currency markets.
He noted that the yuan bonds will further enrich the selection of offshore yuan investment products, improve the offshore yuan yield curve, and advance the yuan internationalization.
The green bonds and infrastructure bonds are expected to be settled on May 14 and listed on the Stock Exchange of Hong Kong and the London Stock Exchange.
The green bonds and infrastructure bonds have been rated AA- by Fitch, Aa3 by Moody's, and AA+ by S&P Global. The Hong Kong Monetary Authority acted on behalf of the government in the issuance of these green bonds and infrastructure bonds.
𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓
