Green bonds four times oversubscribed

Staff reporter

Hong Kong has raised US$6 billion (HK$46.8 billion) in multicurrency green bonds with a nearly four-time oversubscription, the Hong Kong Monetary Authority said in a statement yesterday.

The bonds denominated in US dollars, euros and yuan were the biggest ever environmental, social and governance-related bonds in Asia, following a similar issuance of US$5.75 billion in the city in January.

The US dollar bonds raised US$2.25 billion in three, five and 10-year tranches with interest rates ranging from 4.041 to 4.341 percent, it said.

The euro bonds comprised a four-year and a nine-year tranche totaling EUR1.5 billion (HK$12.6 billion) and the yuan ones with two, five and 10-year tranches raised 15 billion yuan (HK$16.5 billion).

The yuan bonds included a new 10-year tranche and the total amount was also expanded from the combined 10 billion yuan in the January issuance.

The bonds, rated AA+ by S&P Global Ratings and AA- by Fitch, are expected to have the issuance settled next Wednesday for listing on the Hong Kong and London exchanges.

Proceeds raised will be credited to the Capital Works Reserve Fund to finance or refinance projects that provide environmental benefits and support the sustainable development of Hong Kong.

"The enthusiasm for Hong Kong green bonds from global investors demonstrates their recognition of Hong Kong's efforts in green and sustainable development," Financial Secretary Paul Chan Mo-po said.