Retail Green Bond
The Hong Kong government plans to issue its first retail green bond this year, aiming to provide individual investors with opportunities to participate in the market. This is also the second green retail bond issuance in Hong Kong after launching the government green bond program.
Last May, Hong Kong issued HK$20 billion (US$2.6 billion) of green retail bonds with a fixed coupon of no less than 2.5%. The issuance scale of this bond is 15 billion to 20 billion, with a fixed coupon of no less than 4.75%.
Related Post: Introduction to Hong Kong Green Bond Program
Features of Retail Green Bond
The green bond issued this time is a three-year bond, and bond holders will receive interest every six months. The bonds will be officially issued in October and listed on the Hong Kong Exchange (HKEX). In addition to subscription, investors can also buy and sell bonds in the secondary market.
The funds raised from this green bond will be invested in green project financing and refinancing activities with environmental benefits and sustainable development, and the allocation of funds and expected environmental benefits will be announced every year.
History of Hong Kong Green Bond
This retail green bond is the eighth government green bond issuance in Hong Kong. Hong Kong has previously issued six green bonds to institutional investors and one green bond to individual investors.
In May 2019, the first green bond was issued with a scale of US$1 billion.
In February 2021, the second green bond was issued with a scale of US$2.5 billion.
In November 2021, the third green bond was issued with a scale of US$3 billion.
In May 2022, the fourth green bond, with a scale of US$2.6 billion (for individual investors).
In January 2023, the fifth green bond was issued with a scale of US$5.8 billion.
In February 2023, the sixth green bond was issued with a scale of US$100 million (tokenized bond).
In June 2023, the seventh green bond was issued, with a scale of US$6 billion.