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Hong Kong prices first yuan-denominated green bonds, raising US$783 million, in boost for sustainable finance credentials
- City’s government sold euro-denominated green bonds last week
- Hong Kong wants to position itself as Asia’s hub for sustainable finance as it seeks to reach carbon neutrality by 2050
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Hong Kong has priced its first yuan-denominated green bonds, raising 5 billion yuan (US$783 million) just days after selling its first euro-denominated green offering as the city seeks to position itself as Asia’s hub for sustainable finance.
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The city’s government sold 2.5 billion yuan in three-year green bonds and 2.5 billion in five-year green bonds in its fourth offering since announcing its sustainable bonds programme in 2018, according to a person familiar with the offering.
Financial Secretary Paul Chan Mo-po announced the latest round of green bonds on his blog on Sunday.
“Climate change is an imminent issue for all of us,” Chan said in the post. “The government and financial regulators are working with the industry to enhance the financial sector’s resilience to climate risks and to seize the relevant opportunities, so as to support Hong Kong meeting its pledge to achieve carbon neutrality before 2050. At the same time, we also leverage our role as the financial centre for the country and Asia to move towards green and sustainable development.”
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The offering underscores the city’s HK$175.5 billion (US$22.5 billion) commitment to green bonds over the next five years as it strives to become an international green financial centre.
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