Hong Kong mulls green bonds sales in three currencies

HONG Kong has mandated banks to sell green notes denominated in US dollars, euros and offshore yuan, in the city’s latest push to establish itself as a green finance hub.

The Hong Kong Monetary Authority, acting as the representative for the sale, has mandated banks to organise a series of fixed-income investor calls from Jul 16 for the potential offerings, according to a source familiar with the matter who asked not to be identified.

The city has been ramping up green bond sales as part of a government sustainable bond programme that seeks to promote the development of green and sustainable finance. The government has set a borrowing ceiling of HK$500 billion (S$86 billion) for the 2024 to 2025 budget year. according to the programme’s website. The funds are set to be used for green and sustainable projects.

Hong Kong priced US$750 million green bonds across four currencies earlier this year. In 2023, it sold the equivalent of US$6 billion in sustainable bonds in what was Asia’s largest-ever green debt offering. BLOOMBERG