Gov’t wants to raise loan limits in bond programmes

The proposal will increase borrowing limits to $300b and $200b in two government bond programmes.

The government has introduced two resolutions to the Legislative Council that will raise the borrowing limits in the Government Bond Programme (GBP) and the Government Green Bond Programme (GGBP).

Amongst the resolution proposes to raise the cap for the GBP to $300b from the current $200b; whilst the other will raise the borrowing limit for the GGBP to $200b from $100b.

"The GBP and the GGBP have been serving the important function of promoting bond market development in Hong Kong through regular issuances of institutional, retail and green bonds,” Financial Services and Treasury Secretary Christopher Hui said.

“We hope that, with the enlarged scale, they can cater for the increasing demand of local and international investors for high-quality government bonds,” he added, noting the higher limit will reinforce Hong Kong’s standing in the bond market.

The GGBP has so far launched $27.1b (US$3.5b) worth of green bonds in two issuances. If expanded, the government will use the proceeds to fund green projects.

“Apart from issuing inflation-linked retail bonds, the Government will also lower the eligible age for subscribing Silver Bond from 65 to 60 and issue retail green bonds in this financial year,” he added.