HKSAR Government’s Institutional Green Bonds Offering

In view of the government’s latest Institutional Green Bonds Offering the Hong Kong Monetary Authority (HKMA) has published a press statement. The offering encompassed a total of US$5.75 billion worth of green bonds denominated in three currencies, namely US Dollars (USD), Euro (EUR), and Renminbi (RMB) and was therefore the largest ever offering of green bonds in Asia. The bonds were priced on January 4 and scheduled to be settled on January 11, 2023.
The offering, so HKMA, was very well perceived by investors and many tranches were expanded due to the large interest of investors. In fact, with a total of US$36 billion equivalent in orders, the issuance was heavily oversigned. Key investors were banks, insurance companies, fund managers, and governmental organizations (e.g. central banks) as shown below.
Graphic 1 – Investor Distribution

The bonds with credit ratings of AA+ of S&P Global Ratings and AA- of Fitch will be listed on the Hong Kong Stock Exchange and the London Stock Exchange. Their proceeds are used for qualifying projects under the government’s Green Bond Framework for „projects that will improve the environment and facilitate the transition to a low carbon economy“.