Report Says 2nd Green Bond Deal Of 2023 Set To Go

The Hong Kong government is aiming to raise US$4 billion to US$6 billion in a multi-currency green bond deal, according to two sources with direct knowledge of the matter.

The sources could not be named as the information is confidential.

The government referred a request for comment to the Hong Kong Monetary Authority, which did not immediately respond to Reuters.

The deal consists of 3-, 5- and 10-year dollar green bonds, according to a term sheet seen by Reuters.

A separate term sheet showed the government is also carrying out an offshore Chinese yuan green bond with 2-, 5- and 10-year tenors.

Hong Kong also plans to issue a Euro green bond, according to the sources, but details of that will be released later on Wednesday.

The reported deal is the second green bond carried out by the SAR this year after it raised US$5.75 billion worth of bonds in dollars, euros and green bonds in January.

Initial price guidance has been set at Treasuries plus 65 basis points (bps) for the 3-year dollar bond, Treasuries plus 70 bps for the 5-year and Treasuries plus 80 bps for the longer-dated bond, the term sheet showed.

For the offshore yuan tranche, price guidance is set at 3.15 percent for the two-year, 3.4 percent for the five-year and 3.7 percent for the ten-year bond.

The government plans to use the funds raised to finance projects that provide 'environmental benefits and support the sustainable development' of the city, according to the term sheet. (Reuters)