Retail green bonds to go on sale

February 15, 2022

Secretary for Financial Services & the Treasury Christopher Hui:

The subscription period (of the green bonds) will start from March 1 (and end on) March 11. Hong Kong residents, ie holders of valid Hong Kong identity cards, may apply through specified placing banks, securities brokers or the Hong Kong Securities Clearing Company Limited.

To align with the overarching message of environmental awareness and also taking into account the COVID-19 situation, we encourage investors to make use of electronic application channels.

The proceeds of the Government Green Bond Programme will be credited to the Capital Works Reserve Fund to finance or refinance green projects with environmental benefits.

The steering committee on the Government Green Bond Programme, chaired by the Financial Secretary, has been overseeing the implementation of the programme, including the use and the management of proceeds, selection of eligible projects and the publication of green bond reports to provide information on the allocation of proceeds and the expected environmental benefits of green projects on an annual basis.

(To watch the full press conference with sign language interpretation, click here.)

The Government today announced the launch of the $6 billion inaugural retail green bonds under the Government Green Bond Programme for Hong Kong residents’ subscription, at a denomination of $10,000.

During the three-year tenor, the bond holders will be paid interest once every six months at a rate linked to the city’s inflation, subject to a minimum rate of 2%.

Financial Secretary Paul Chan noted that the inaugural retail green bond issuance marks another milestone in the development of the local green finance market.

“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.”

At a press conference today, Secretary for Financial Services & the Treasury Christopher Hui elaborated:

“The proceeds of the Government Green Bond Programme will be credited to the Capital Works Reserve Fund to finance or refinance green projects with environmental benefits.

“The steering committee on the Government Green Bond Programme, chaired by the Financial Secretary, has been overseeing the implementation of the programme, including the use and the management of proceeds, selection of eligible projects and the publication of green bond reports to provide information on the allocation of proceeds and the expected environmental benefits of green projects on an annual basis.”

The subscription period will start from 9am on March 1 and end at 2pm on March 11. Hong Kong residents may apply through a placing bank, a securities broker or the Hong Kong Securities Clearing Company.

“To align with the overarching message of environmental awareness and also taking into account the COVID-19 situation, we encourage investors to make use of electronic application channels,” Mr Hui added.

The retail green bonds will be issued on March 22 and listed on the Hong Kong Stock Exchange the next day. They can be traded in the secondary market afterwards.