The Hong Kong government has issued around HKD27.6 billion (USD3.52 billion) equivalent in multi‑currency green and infrastructure bonds, denominated in Hong Kong dollars, renminbi, US dollars and euros. Clifford Chance advised on the issuance.
Paul Chan, Hong Kong’s financial secretary, said in a press release: “The issuance of infrastructure bonds by the HKSAR government raises capital for key infrastructure projects, including the Northern Metropolis, thereby facilitating early project completion for the good of the economy and people’s livelihood. Also, government green bonds support green and low-carbon transformation projects, as well as consolidate Hong Kong’s development as a green and sustainable finance hub.”
The offering comprised five tranches, priced on 7 May and listed on the HKEX and the London Stock Exchange on 14 May. The tranches included: a HKD3 billion 30‑year infrastructure bond with a yield of 3.95%; a RMB6 billion 20‑year infrastructure bond with a 2.6% return; a RMB6 billion 30‑year 2.7% infrastructure bond; a USD500 million five‑year 4.052% infrastructure bond; and a EUR750 million eight‑year green bond with a return of 3.119%.
Among them, the “issuance of RMB bonds will further enrich offshore RMB product offerings, improve the offshore RMB yield curve and promote RMB internationalisation”, Paul Chan said.
Clifford Chance advised the Hong Kong government, with partner Mark Chan leading the transaction team and included counsel Torrance Shi.
The five tranches were issued under the Hong Kong government’s Green Bond Framework and Infrastructure Bond Framework. The proceeds will be credited to the Capital Works Reserve Fund and used to finance or refinance eligible green and infrastructure projects.
