Hong Kong Offers First Retail Green Bonds to Raise $768M

The Hong Kong government is selling up to HK$6 billion ($768 million) in green bonds to retail investors for the first time, which will fund the city’s upcoming sustainable projects.

The three-year bonds will be directly available to the city’s residents for as little as HK$10,000 ($1,281), Hong Kong officials announced on Tuesday. They will pay an interest rate tied to inflation or a fixed rate of 2%, whichever is higher.

The proceeds of the bonds’ sales will fund the city’s green projects, Christopher Hui, secretary for financial services and treasury told reporters.

“Residents can directly contribute to greening Hong Kong and share the fruit of the sustainable development of Hong Kong through participating in the green and sustainable finance market,” said Hui.

Hong Kong plans to increase its renewable energy production capacity in a push to reach carbon neutrality by 2050.

The debt will be available to holders of a Hong Kong identification card between March 1 and 11 through placing banks, securities brokers or the Hong Kong Securities Clearing Company.

Hong Kong has sold an overall $7.2 billion in green bonds, including the first batches in 2019 and 2020 of $1 billion and $2.5 billion, respectively, which were exclusive to institutional investors. The city aims to sell an additional HK$175.5 billion over the next five years.

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