Gov't issues new tranche of retail green bonds

Residents can subscribe in $10,000 increments.

The government will issue a new batch of retail green bonds under its Government Green Bond Programme.

Hong Kong residents can subscribe in  $10,000 increments starting at 9 a.m. on September 18 until 2 p.m. on September 28. 

"Hong Kong residents may apply through a placing bank, a securities broker or the Hong Kong Securities Clearing Company," the government said.

On October 11, the retail green bonds will be listed on the Hong Kong Stock Exchange. They can be traded in the secondary market afterwards.

“During the three-year tenor, bondholders will be paid interest once every six months at a rate linked to the city’s inflation, subject to a minimum rate of 4.75%,” the government said.

The government said it targets to issue $15b in retail green bonds. Given market conditions, the government may increase the issuance size to a maximum of $20b.

proceed from the bond issuance will be credited to the government’s Capital Works Reserve Fund to finance or refinance green projects with environmental benefits.