Hong Kong's government has priced a 7.5 billion yuan (HK$8.76 billion) five-year digitally native green bond at a 1.65 percent coupon and reoffer yield, according to a term sheet on Monday.
The offshore yuan-denominated notes were priced at par and will mature on September 29, 2031, the term sheet showed.
The deal follows the government's pricing of a HK$5.5 billion two-year digital green bond at a 3.8 percent coupon, according to a separate term sheet earlier on Monday.
Both bonds will be listed on Hong Kong's stock exchange and their proceeds will be used to fund or refinance eligible environmental projects under its Green Bond Framework.
Both bonds will be recorded electronically rather than issued as paper certificates. They will use HSBC's Orion digital platform and clear through the Hong Kong Monetary Authority's Central Moneymarkets Unit, which is linked to Euroclear and Clearstream.
Hong Kong is rated Aa3 by Moody's, AA+ by S&P and AA- by Fitch. Both bonds are expected to receive the same ratings.
HSBC, Bank of China (Hong Kong), Bank of Communications, BNP Paribas, Credit Agricole CIB, ICBC (Asia), JPMorgan and Standard Chartered led the deals.
Reuters
