Editorial | MTR’s embrace of green bonds an example for other Hong Kong firms

While local companies have been slow to take up ESG, the MTR Corporation’s record bond issuance shows there is investor interest in supporting the environment

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People visit “Harbour Station” at the Wan Chai harbourfront on January 13. Two retired train cars donated by the MTR Corporation are now displayed at the waterfront as a tourist attraction. Photo: Sun Yeung

Published: 6:45am, 3 Feb 2026

Green bonds are key to climate finance. Hong Kong companies have been somewhat slow to take up environmental, social and corporate governance (ESG). The MTR Corporation, Hong Kong’s citywide rail operator, is something of a pioneer. It first set up a green bond framework about a decade ago to determine how best to issue such bonds and use the proceeds to invest in sustainable projects and facilities.

Since then, it has periodically issued green bonds, usually in the local currency. However, its latest issuance has raised a record A$2 billion (US$1.4 billion), marking its first time using Australian dollar-denominated green bonds to fund environmentally friendly projects. The bonds, issued in two equal tranches, were oversubscribed more than sixfold by a variety of investors. These are a five-year tranche of A$1 billion and a 12-year tranche of A$1 billion, with coupon rates of 4.886 per cent and 5.582 per cent, respectively. The proceeds will be used to support green projects and strengthen financial resources to allow for flexible sustainable investments.

Outside Hong Kong, MTR Corp also operates rail lines in Beijing, Hangzhou, Shenzhen, Macau, Melbourne, Sydney, Sweden and Britain. It has significantly increased its footprint in Australia in the last decade, and the latest bond offers are another step in that direction. Investor interest shows there is a significant capital market related to protecting the global environment. Hong Kong companies looking to diversify avenues to raise capital should take note.

The Earth is getting warmer, but geopolitical tensions are diverting attention and resources away from tackling climate change. In 2024, global cumulative green bond issuances surpassed US$3 trillion while annual issuance passed US$577 billion. Even so, green bonds still only accounted for about 3 per cent of the total global bond market.

The Hong Kong government is the majority shareholder of MTR Corp, one reason the rail operator-cum-property developer is sensitive to ESG. Hong Kong needs more companies like MTR Corp to do their part for the environment.

.css-1m2rp1p{color:#34b8b5;}Editorial | MTR’s embrace of green bonds an example for other Hong Kong firms

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}While local companies have been slow to take up ESG, the MTR Corporation’s record bond issuance shows there is investor interest in supporting the environment

Editorial | MTR’s embrace of green bonds an example for other Hong Kong firms

While local companies have been slow to take up ESG, the MTR Corporation’s record bond issuance shows there is investor interest in supporting the environment