The Government today announced the successful pricing of approximately HK$27.6 billion worth of green bonds and infrastructure bonds under its Sustainable Bond Programme and Infrastructure Bond Programme.
Denominated in Hong Kong dollars, renminbi (RMB), US dollars and euros, the bonds are expected to be settled on May 14. They will be listed on the Hong Kong Stock Exchange and the London Stock Exchange.
The Monetary Authority noted that the bonds were priced yesterday following a virtual roadshow.
The bonds have been assigned credit ratings of AA- by Fitch, Aa3 by Moody’s and AA+ by S&P Global Ratings.
The infrastructure bonds include a HK$3 billion 30-year tranche at 3.95%, an RMB6 billion 20-year tranche at 2.6%, an RMB6 billion 30-year tranche at 2.7%, and a US$500 million 5-year tranche at 4.052%.
A EUR750 million 8-year green tranche at 3.119% was also issued.
The offering attracted a wide spectrum of investors from more than 30 markets across Asia, Europe, the Middle East and the Americas. It drew approximately HK$239 billion in orders, representing a subscription ratio of about 8.6 times.
Financial Secretary Paul Chan said the Government has continued to issue longer-tenor HK-dollar and RMB bonds to meet institutional demand and foster the development of fixed income and currency markets.
“Issuance of RMB bonds will further enrich offshore RMB product offerings, improve the offshore RMB yield curve and promote RMB internationalisation,” Mr Chan said.
“The enthusiastic response from global institutional investors to the subscription reflects their confidence in the development prospects of Hong Kong,” he added.