HK Expands Green Bonds And Silver Bonds Schemes

The Financial Secretary, Paul Chan, said the SAR government will expand its bonds' issuance schemes in the coming year by regularising the issuance of green bonds and lowering the eligible age for subscribing Silver Bonds.

While delivering his latest budget blueprint in Legco on Wednesday, the minister said the government plans to regularly issue green bonds - where its proceeds are aimed to fund projects that'll improve the environment.

The announcement comes after the government rolled out its second batch of official Green Bonds totalling US$2.5 billion last month.

"We propose to double the borrowing ceiling of the [Green Bond] Programme to HK$200 billion to allow for further issuance of green bonds totalling HK$175.5 billion within the next five years, having regard to the market situation," he said.

He added that the government also hopes to roll out retail green bonds for members of the public.

Meanwhile, the minister said the eligible age for subscribing Silver Bonds will be lowered from 65 to 60, adding that the government plans to issue no less than HK$24 billion of Silver Bonds this year, considering that "the global low interest rate environment will persist for a considerably long time...and especially the elderly prefer investment options with steady and reliable returns."

Chan also outlined plans to issue no less than HK$15 billion of inflation-linked bonds this year.