HK launches first renminbi green bonds offering for $6.099

It was offered in two tranches with coupon rates of 2.8% and 3%.

Hong Kong has issued its first-ever offshore renminbi green bonds for $6.099 (RMB5b).

The government sold $3.049b (RMB2.5b) in three-year green bonds with a coupon rate of 2.8%, and another $3.049b (RMB2.5b) in five-year green bonds at 3%.

The two yuan-dominated green bonds offering attracted over $17.3b (RMB14.2b) in orders, according to the government. 

More than half of the bonds (54%) were distributed to banks; 35% to fund managers, private banks, and insurance companies; and 11% to supranationals, official institutions, and corporates.

The green bonds will be listed on the Hong Kong Stock Exchange and the London Stock Exchange and are expected to be settled on 30 November 2021.

Proceeds from the renminbi green bonds sales, which is under the Government Green Bond Programme, will be credited to the Capital Works Reserve Fund to “finance or refinance government projects that provide environmental benefits and support the sustainable development of Hong Kong.”

Financial Secretary Paul Chan said the landmark offering “strengthens the Hong Kong platform to better serve renminbi issuers who raise green financing in support of low-carbon transition efforts.”

Last week, Hong Kong also issued US dollar and euro-denominated green bonds offerings.

(1 HKD = 0.82 RMB)