Hong Kong launches triple-currency green bonds as Asia’s largest ESG bond issuance to date
As the new year sets in, the Government of the Hong Kong Special Administrative Region of the People’s Republic of China (HKSAR Government) has successfully launched green bond issuance, raising an equivalent of USD5.75 billion in total. The issuance consists of eight tranches with tenors ranging from 2 to 30 years, denominated in US dollars (USD), euro (EUR) and Renminbi (RMB).
The largest ESG bond issuance in Asia to date
The triple-currency offering is the largest ESG bond issuance in Asia to date. The HKSAR Government has also set a significant benchmark as the first government issuer in the region to issue green bonds in three currencies concurrently.
The offering received strong response from global investors and attracted new investors who had not previously participated in the HKSAR Government’s green bond issuances. The RMB tranches have also drawn interest from Mainland investors through Southbound Trading under Bond Connect, demonstrating Hong Kong’s position as a leading offshore RMB hub.
A reflect of the HKSAR Government’s continuous climate commitments and strategy
Its Green Bond Framework was published in 2019 and was subsequently updated in February 2022, reflecting the HKSAR Government’s continuous climate commitments and strategy, and aligning with the latest international standards and practices in the green bond market. The proceeds will be credited to the Capital Works Reserve Fund to finance or refinance projects that provide environmental benefits and support the sustainable development of Hong Kong.
Crédit Agricole CIB acted as one of the only two Joint Green Structuring Banks, as well as a Joint Global Coordinator, Joint Lead Manager and Joint Bookrunner in this transaction and has assumed the same key roles in all of the HKSAR Government’s green bond issuances since the inaugural one in May 2019.
The success of the HKSAR Government’s green bond issuances has once again demonstrated its commitment to facilitate the city’s transition to a low carbon economy and provided useful benchmarks for other potential issuers.
We look forward to continuing our efforts to promote Hong Kong’s sustainable development through our leading green expertise and best practices.
“This highly successful green bond issuance demonstrates the HKSAR Government’s commitments as a green hub, in addition to its role as a leading international financial centre, which is widely recognised and welcomed by the market and international investors. It is also our honour to be able to support and accompany the Hong Kong Monetary Authority (HKMA) and HKSAR Government along the green and sustainable finance journey.”
Edouard O’Neill, Chief Executive Officer, Hong Kong Branch & Head of Structured Finance Asia
“Crédit Agricole CIB is very proud to have acted continuously as Green Structuring Advisor for the HKSAR Government since its first green bond issuance in 2019. By issuing the largest multi-tranche EUR/USD/CNH green bond in Asia and Hong Kong, the HKSAR Government has confirmed its leading role in the sustainable finance space in APAC and globally.”
Antoine Rose, Head of Sustainable Banking for Asia-Pacific and the Middle East
“This is the first EUR, USD, CNH concurrent green bond issuance by a government. Furthermore, the ability to price eight tranches concurrently with such great support from local and global investors highlight the credit strength of the HKSAR Government.”
Alan Roch, Head of Credit for Asia-Pacific and the Middle East
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