Hong Kong Government Successfully Prices HK$27 Billion in Green and Infrastructure Bonds
Terrill Dicki Jun 04, 2025 11:20
The HKSAR Government has priced HK$27 billion in green and infrastructure bonds, attracting global investor interest with a significant oversubscription, according to the Hong Kong Monetary Authority.
The Hong Kong Special Administrative Region (HKSAR) Government has announced the successful pricing of approximately HK$27 billion in institutional green and infrastructure bonds, according to the Hong Kong Monetary Authority (HKMA). The bonds, issued under the Government Sustainable Bond Programme and the Infrastructure Bond Programme, are denominated in Hong Kong dollars (HKD), Renminbi (RMB), US dollars (USD), and euro (EUR).
Details of the Bond Offering
Following a virtual roadshow on June 2, 2025, the bonds were priced on June 3, 2025. The offering includes a HKD1.5 billion 30-year infrastructure tranche at 3.85%, a RMB4 billion 20-year green tranche at 2.60%, a RMB4 billion 30-year infrastructure tranche at 2.70%, a USD1 billion 5-year green tranche at 4.151%, and a EUR1 billion 8-year green tranche at 3.155%. This issuance marks the first time the HKSAR Government has offered a 30-year HKD bond.
Investor Interest and Market Impact
The bond offering attracted participation from a diverse range of investors across more than 30 markets in Asia, Europe, the Middle East, and the Americas. The total order amounted to approximately HK$237 billion, indicating a subscription ratio ranging from 3.3 to 12.5 times. The issuance aims to support green projects and infrastructure development in Hong Kong, such as the Northern Metropolis project, and reflects confidence in Hong Kong’s robust public finance and long-term growth prospects.
Frameworks and Credit Ratings
The bonds are issued in line with the HKSAR Government’s Green Bond Framework and Infrastructure Bond Framework. Proceeds will be directed to the Capital Works Reserve Fund to finance or refinance eligible projects. The bonds have received credit ratings of AA+ from S&P Global Ratings and AA- from Fitch. The HKMA served as the HKSAR Government’s representative for the offering.
Future Prospects and Market Development
With the publication of its Green Bond Framework in March 2019 and subsequent updates in February 2022, the HKSAR Government continues to align its strategies with international standards to combat climate change. The infrastructure bonds, outlined in the Infrastructure Bond Framework published in September 2024, are intended to fund projects conducive to Hong Kong’s long-term development. Future reports will detail the allocation of proceeds and expected benefits.
The bonds are expected to be settled on June 10, 2025, and will be listed on the Hong Kong Stock Exchange and the London Stock Exchange. This strategic move by the HKSAR Government not only supports sustainable development but also enhances the local bond market by extending the HKD benchmark yield curve.
For further details, refer to the Hong Kong Monetary Authority.
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