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$6 billion worth of green bonds denominated in three currencies, namely US Dollars (USD), Euro (EUR), and Renminbi (RMB). For the first time ever, a 10-year RMB green bond was issued, contributing to the expansion of the offshore RMB yield curve and enhancing the variety of offshore RMB products. The bonds were priced on May 31, 2023 and scheduled to be settled on June 7, 2023.
The offering, so HKMA, was very well perceived by investors with key investors being 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“.
As the interest in Hong Kong government green bond issues is seemingly high, the government will continue to issue more green bonds in the near future, so Mr. Paul Chan, the Financial Secretary.