The Government today announced the successful offering of its inaugural green bond under the Government Green Bond Programme.
The green bond, with an issuance size of US$1 billion and a 5-year tenor, sets an important new benchmark for potential issuers in Hong Kong and the region.
It saw strong demand from global investors, attracting orders exceeding US$4 billion, which was more than four times the issuance size.
Orders were received from more than 100 global institutional investors, and 50% of the green bond was distributed to Asia, 27% to Europe and 23% to the US.
By investor type, 29% was distributed to banks, 30% to fund managers, private banks and insurance companies, and 41% to sovereign wealth funds, central banks and supranationals.
Proceeds raised under the programme will be credited to the Capital Works Reserve Fund to finance public works projects that provide environmental benefits and support the sustainable development of Hong Kong.
Financial Secretary Paul Chan said the Government is pleased to see such strong demand for its inaugural green bond.
“The favourable response from global investors indicates not only their recognition of Hong Kong’s credit strength but also their support of Hong Kong’s determination and efforts in promoting sustainable development and combatting climate change.”
The green bond is expected to be settled on May 28 and listed on the Hong Kong Stock Exchange and the London Stock Exchange.