Hong Kong to raise up to US$5b in green bonds: sources
HONG Kong aims to raise up to the equivalent of US$5 billion in a US dollar, euro and offshore Chinese yuan green bond issuance, sources with direct knowledge of the matter said.
The sources added that the final size and tenors for the issuance could change, depending on investors’ appetite. They declined to be named, as the information had not been made public.
Hong Kong’s government was proposing that the US dollar tranche could be spread across three, five and 10-year tranches, with a possibility of issuing a 30-year bond, two sources told Reuters. They also said the government was aiming to raise about US$3 billion in US dollars.
The euro tranche was targeting one billion euros (S$1.4 billion) in two and seven-year tenors, they added.
One of the sources, along with two others, said the offshore yuan deal was intended to be worth about five billion yuan (S$971.6 million) with two tenors, including a longer tenor of five years. They variously said the shorter tenor would be either two or three years.
Books for the deal should open on Wednesday (Jan 4), they added.
Eight investment banks are working on the US dollar and euro transactions, and seven are mandated on the offshore yuan tranche, according to the term sheet seen by Reuters.
Calls with investors were underway on Tuesday, it showed. The Hong Kong government made no immediate response to a request for comment. REUTERS
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