Green Bond Offering Successful

The Government today announced the successful offering of US$3 billion of green bonds under the Government Green Bond Programme, including its inaugural offering of euro-denominated bonds.

The offering comprises US$1 billion 10-year, 1.25 billion euros 5-year and 500 million euros 20-year green bonds.

Orders were received from a diverse group of conventional and green investors.

For the US dollar tranche, 72% was distributed to Asia and 28% to Europe. By investor type, 63% was distributed to banks, 16% to fund managers, private banks and insurance companies and 21% to central banks, sovereign wealth funds and supranationals.

For the euro tranches, 27% was distributed to Asia and 73% to Europe. By investor type, 25% was distributed to banks, 56% to fund managers, private banks and insurance companies and 19% to central banks, sovereign wealth funds and supranationals.

Proceeds raised under the programme will be used to fund projects that will improve the environment and facilitate the transition to a low carbon economy.

Financial Secretary Paul Chan said: “We are pleased to see the strong demand for the Hong Kong Special Administrative Region 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.”

Mr Chan noted that the inaugural euro-denominated offering enables Hong Kong to reach out to a new group of investors, drawing their attention to the sustainability journey of and financial opportunities in the city.

The green bonds are expected to be settled on November 24 and listed on the Hong Kong Stock Exchange and the London Stock Exchange.