HKSAR gov't offers Institutional Green Bonds

HONG KONG, Jan. 5 (Xinhua) -- The Hong Kong Special Administrative Region (HKSAR) government on Thursday announced the successful offering of 5.75 billion U.S. dollars worth of green bonds (the Green Bonds), denominated in dollars, euro and Renminbi (RMB), under the Government Green Bond Programme.

The triple-currency offering is the largest ESG (Environmental, Social, and Governance) bond issuance in Asia, according to an official press release.

The Green Bonds are being issued under the Global Medium Term Note Programme dedicated to green bond issuances established in early 2021, expected to be settled on Jan. 11, and concurrently listed on the Hong Kong Stock Exchange and the London Stock Exchange.

The Green Bonds have been assigned credit ratings of AA+ by S&P Global Ratings and AA- by Fitch.

The Green Bonds were well received by global investors, attracting more than 36 billion dollars equivalent in orders. The offering attracted new investors who had not participated in the HKSAR government's previous green bond issuances before, with continued participation from a diverse group of conventional and green investors.

The RMB tranches were doubled in size to a total of 10 billion RMB (1.45 billion dollars) to cater to investor demand, and have attracted increased participation of mainland investors through the Southbound Trading under the Bond Connect program, demonstrating Hong Kong's position as the leading offshore RMB hub.

The RMB tranches have also enriched offshore RMB product selections, promoting RMB internationalization.

"We see continued strong demand from global institutional investors for the HKSAR government's green bonds despite the recent market volatility," said Paul Chan, financial secretary of the HKSAR government.

Since the issuance in 2021, the HKSAR government launched a triple-currency issuance again this year to demonstrate its commitment to promoting the development of green and sustainable finance in Hong Kong and provide the market with useful benchmarks, he said.