Hong Kong issues biggest green bond ever

Two women checking photos they have taken in Hong Kong, as the setting sun shines from behind the International Finance Centre IFC tower on Jan 2, 2023. Hong Kong's Special Administrative Region government offered up to $6 billion worth of green bonds in multiple currencies on Thursday, marking its biggest bond issuance ever.

The bonds, denominated in euro, renminbi RMB and US dollars, continued to attract a broad spectrum of investors and were well received, with close to $30 billion equivalent in orders, the Hong Kong Monetary Authority said in a statement. The HKMA was responsible for the government's representative in this green bond offering.

The bonds will be settled on 7 June and listed on the London Stock Exchange and the Hong Kong Stock Exchange.

The HKMA said the bonds have been assigned credit ratings of AA by S&P Global Ratings and AA by Fitch. The proceeds will be used to finance or refinance projects that provide environmental benefits and support the sustainable development of Hong Kong.

The RMB tranches were extended from a combined 10 billion yuan $1.4 billion from the January 2023 issuance to 15 billion yuan this time, with the additional issuance of a new 10 year RMB tranche.

Hong Kong is to issue retail green bonds worth $769 m in March.

The enthusiasm for Hong Kong Green Bonds from global investors shows their appreciation of Hong Kong's efforts in green and sustainable development, said financial secretary Paul Chan Mo-poChan Mo-po.

The offering has included our first 10 year RMB green bond, which helps to extend the offshore RMB yield curve and continues to enhance offshore RMB product offerings, promoting RMB internationalization in an orderly manner, Chan said.

Hong Kong is dedicated to building itself as a global green financing hub by issuance of green bonds.

The framework was updated in February 2022, reflecting the government's current climate commitments and strategy and aligning with the latest international standards and practices in the green bond market.

The finance minister said the government will continue to issue green bonds to promote innovation and further develop the market.