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The offshore yuan green sovereign bonds issued by the Ministry of Finance on Thursday recorded total subscriptions of 62.4 billion yuan on Friday, 10.4 times the issue size.
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The offshore yuan green bonds, which will be listed on the Stock Exchange of Hong Kong, are issued with tenors of three and five years. Specifically, the three-year bonds were oversubscribed by 9.8 times, while the five-year bonds were oversubscribed by 11 times.
All proceeds raised from the bond issuance will be applied to eligible green expenditures under the central fiscal budget in accordance with the People’s Republic of China Sovereign Green Bond Framework.
Speaking at the issuance ceremony, Financial Secretary Paul Chan Mo-po said this is the first issuance of the Central Government’s yuan-denominated sovereign green bonds in Hong Kong, which underscores the important role of the city’s Finance+ development strategy in harnessing the power of finance to support and contribute to the country’s high-quality development.
Chan noted that the Ministry of Finance has been issuing yuan-denominated bonds in Hong Kong for 18th consecutive years, totaling 460 billion yuan, providing a reliable and safe investment return option for international investors. He said to accommodate the national 15th-Five-Year plan’s yuan internationalization, Hong Kong processes approximately 75 percent of all global offshore yuan settlements, and the liquidity pool has nearly 1.2 trillion, making it the world's largest offshore yuan hub.
He emphasized that as the nation targets 3060 Dual Carbon, this issuance will connect global capital with China’s high-quality green projects. He said Hong Kong has ranked first in Asia in green bond issuance for eight consecutive years, commanding a 40 percent market share. In recent years, the city has been actively promoting innovative instruments such as green digital bonds and catastrophe bonds, while building a comprehensive “finance + technology + green” ecosystem.
