Hong Kong has secured $3bn through the sale of denominated green bonds

The government of Hong Kong has revealed it has raised $3bn through the sale of green bonds denominated in US dollars and Euros.

According to Regulation Asia, the offering comprised three tranches of $1bn 10-year, €1.25bn 5-year and €500m 20-year under the country’s Green Bond Programme.

The publication noted the 20-year tranche is the longest tenor euro-denominated green bond issued by an Asian government to date. The Hong Kong government issued $2.5bn of green bonds under the Green Bond Programme in January this year – the first ever 30-year green bond by an Asian government so far.

Hong Kong plans to issue HKD$175.5bn in green bonds over the course of the next five years as the city aims to become an international green financial centre.

The Hong Kong Monetary Authority detailed that the latest green bond offering attracted strong and varied interest from conventional and green investors, and attracted almost three times more orders than its issuance size, while the 5-year and 20-year euro tranches attracted over €2.2bn in orders.

Proceeds from the latest green bond sale will go to Hong Kong’s Capital Works Reserve Fund to finance or refinance public works projects that offer environmental benefits and support  sustainable development.

Hong Kong is also planning to raise funds from the sale of renminbi-denominated green bonds, which it claims will further consolidate its role as the global offshore business hub for China’s currency.

Hong Kong financial secretary Paul Chan Mo-po said, “The inaugural euro-denominated offering has also allowed us to reach out to a new group of investors, drawing their attention to the sustainability journey of and financial opportunities in Hong Kong, providing momentum for further growth of our financial market.

“We are pleased to see the strong demand for the HKSAR Government’s green bonds, underscoring investor confidence in our economic fundamentals as well as their support of our efforts in combating climate change and achieving carbon neutrality.”

Earlier this week, The Philippines’ Department of Finance claims it is finalising a framework for the issuance of the country’s first ever sovereign green bonds.

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