Government launches retail green bond

The government of Hong Kong has published a press statement to announce the launch of a second „batch of retail green bond, under the Government Green Bond Programme, for subscription by Hong Kong residents“. The launch represents another key step in Hong Kong’s ambition to „enrich the green and sustainable finance ecosystem in Hong Kong, and showcase to potential issuers that Hong Kong can provide one-stop services and is the premier platform for issuance of green and sustainable financial products“.
The details on the bond issuance are as follows:
(1) issue size: HK$15 billion (up to HK$20 billion depending upon market conditions)
(2) tenor: 3 years
(3) frequency of interest payments: twice a year
(4) interest rate: linked to inflation with a minimum rate of 4,75%
(5) subscription period: 9 a.m. September 18, 2023 to 2 p.m. September 28, 2023
(6) issue date: October 10, 2023
(7) exchange listing date: October 11, 2023
The proceeds from the issuance will be used to sponsor green, sustainable projects in Hong Kong. More information on the issue may be found on the following website: https://www.hkgb.gov.hk/en/greenbond/greenbondintroduction.html.