Hong Kong to Relaunch HKD20bn Green Bond Issuance

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  • Hong Kong to Relaunch HKD20bn Green Bond Issuance

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    Hong Kong’s financial secretary Paul Chan Mo-Po stated that the city will shortly restart the issuing of retail green bonds, as reported by Reuters on April 10. The retail green bond offering is worth HKD15bn (USD1.9bn) and can be subscribed for up to HKD20bn (USD2.55bn). The issuance was supposed to start in early March this year but was postponed due to a severe COVID-19 outbreak in the city. The three-year retail green bond, with a 2.5% annual interest rate, is anticipated to be available for purchase by the end of April. The funds obtained will be used to fund local infrastructure projects that satisfy environmental standards.

    By 2030, it is anticipated that USD90tr in green investment would be required as the world moves toward a green and low-carbon economy. As a result, Hong Kong has implemented more advantageous policies and investment products to accelerate the growth of local green finance. In 2021, there were 95 Green, Social, and Sustainability bonds (GSS bonds) listed on the Hong Kong Stock Exchange (HKEX) [0388:HK], raising more than HKD280bn (USD35.7bn). Furthermore, the number of ESG funds in Hong Kong has continuously increased. According to HKEX, the market value of ESG funds increased by 84% to HKD4.5bn (USD574m) in 2021, while the average daily turnover more than quadrupled to HKD40.9m (USD5.22m).