HKSAR gov't announces offering of euro-denominated bonds for first time

HONG KONG, Nov. 18 (Xinhua) -- The Hong Kong Special Administrative Region (HKSAR) government announced Thursday the successful offering of 3 billion U.S. dollars' worth of green bonds denominated in U.S. dollars and euros.

The offering comprises 1 billion dollars of 10-year bonds denominated in U.S. dollars, 1.25 billion euros of five-year bonds and 500 million euros of 20-year bonds denominated in euros, with the 20-year tranche being the longest euro-denominated government green bond issued in the Asian region to date, as well as the HKSAR government's first offering of euro-denominated bonds.

Following a virtual roadshow on Nov. 15 and Nov. 16, the green bonds were priced on Nov. 17, with the rate of returns for the 10-year bonds priced at 1.855 percent, five-year bonds at 0.019 percent and 20-year bonds at 1.059 percent.

Despite recent market volatility, the green bonds were well received by global investors. The 10-year bonds attracted 2.9 billion dollars in orders, while the five-year and 20-year bonds attracted over 2.2 billion euros in orders.

Paul Chan, financial secretary of the HKSAR government, said the strong demand for the HKSAR government's green bonds underscores investors' confidence in Hong Kong's economic fundamentals and their support for the HKSAR government's efforts to combat climate change and achieve carbon neutrality.

The inaugural euro-denominated offering has allowed the HKSAR government to reach out to a new group of investors, he added.

The green bonds are expected to be settled on Nov. 24 and will be listed on the Hong Kong Stock Exchange and the London Stock Exchange. Proceeds raised will be credited to the Capital Works Reserve Fund for government projects that provide environmental benefits and support the sustainable development of Hong Kong.