•  
  •  
  •  

Hong Kong raises USD 1bn in oversubscribed green bond sale

Author: 401(K) 2012 on Flickr, CC BY-SA 2.0

May 24 (Renewables Now) - Hong Kong has raised USD 1 billion (EUR 894.3m) from its first green bond sale that ended up being more than four times oversubscribed.

The five-year US dollar-denominated green bond, with a coupon of 2.555%, attracted strong investor interest from around the world, the Hong Kong Monetary Authority said on Wednesday. The total orders surpassed USD 4 billion, allowing the final pricing to be tightened by 17.5 basis points from the initial guidance.

Funds from the placement will be allocated for investment in projects that provide environmental benefits and support Hong Kong's sustainable development.

Both conventional and green investors took part in the transaction and orders were received from over 100 global institutional investors. Asian investors subscriber for around 50% of the bond.

“The favourable response from global investors indicates not only their recognition of Hong Kong’s credit strength, but also their support of Hong Kong’s determination and efforts in promoting sustainable development and combatting climate change,” said Paul Chan, financial secretary of Hong Kong.

The securities will be listed on the Hong Kong and London bourses after settlement, scheduled for May 28. Credit Agricole and HSBC were joint global coordinators and lead managers for the offering.

(USD 1.0 = EUR 0.8943)

More stories to explore
Share this story
Tags
 
About the author
Browse all articles from Veselina Petrova

Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

More articles by the author
5 / 5 free articles left this month
Get 5 more for free Sign up for Basic subscription
Get full access Sign up for Premium subscription