$6b Of Green Bonds To Be Sold Next Month

The government announced on Tuesday the launch of its first ever tranche of green bonds for local retail investors.

Authorities hope to raise HK$6 billion in lots of HK$10,000 each. Subscriptions open on March 1 and run for 10 days.

The bonds will be issued on March 22 and listed on the Stock Exchange of Hong Kong the following day.

The Financial Secretary, Paul Chan, said the bonds will be pegged to inflation, with a minimum interest rate of two percent for three years.

"I announced in the 2021-22 Budget the initiative to issue retail green bonds so that residents can directly contribute to greening Hong Kong and share the fruit of the sustainable development of Hong Kong through participating in the green and sustainable finance market," Chan said.

"This inaugural retail green bond issuance marks another important milestone in the development of the local green finance market."

As set out in the Government's Green Bond Framework, the proceeds raised will go to finance or refinance projects that provide environmental benefits and support the sustainable development of Hong Kong.

The Government will provide information on the allocation of the proceeds and expected environmental benefits of green projects on an annual basis.