The Hong Kong SAR Government announced on June 4 that it had successfully priced green bonds and infrastructure bonds (infrastructure bonds) worth about HK$27 billion under the Government Sustainable Bond Program and the Infrastructure Bond Program, covering Hong Kong dollars, RMB, US dollars and euros.

The green bonds and infrastructure bonds were rated AA+ by S&P Global and AA- by Fitch. The green bonds and infrastructure bonds are expected to be settled on June 10 and listed on the Hong Kong Stock Exchange and the London Stock Exchange.

The HKMA said that the issuance attracted extensive participation from global investors from more than 30 markets in Asia, Europe, the Middle East and the Americas, with a total subscription amount of about HK$237 billion, an oversubscription of 7.7 times, and the subscription amount was about 3.3 to 12.5 times the issuance amount of various bonds. Among them, the 30-year Hong Kong dollar bond is the first issuance of the SAR government and is also the longest-term Hong Kong dollar bond issued by the SAR government so far. The 20-year and 30-year RMB bonds launched for the first time last year were also subscribed enthusiastically by investors, with the issuance scale twice that of last year.

Financial Secretary Paul Chan Mo-po said that the SAR government's issuance of green bonds aims to attract and guide market funds to support green projects and promote Hong Kong's sustainable development. The issuance of infrastructure bonds will help accelerate the construction of the northern metropolitan area and allow projects that benefit the economy and people's livelihood to be completed as soon as possible. The enthusiastic subscription response from global institutional investors this time fully reflects their confidence in Hong Kong's fiscal stability and long-term development. The SAR government's first issuance of 30-year Hong Kong dollar bonds this time will help extend the Hong Kong dollar benchmark yield curve and further promote the development of the local bond market.

Author：Qinger