Hong Kong's government has issued its first ever yuan-denominated green bonds setting an important new benchmark for the offshore yuan market. The 5 billion yuan (HK$6.1 billion) offshore green bonds offering comprises a 2.5 billion yuan three-year bond and a 2.5 billion yuan five-year bond. The Hong Kong Monetary Authority said the bonds saw strong demand despite recent market volatility, with the two attracting over 14.2 billion yuan in orders, a 1.84 times oversubscription. The de facto central bank said 54 percent of the green bonds were distributed to banks, 35 percent to fund managers, private banks, and insurance companies, and 11 percent to supranationals, official institutions, and corporates. Together with the US dollar and euro-denominated green bond offerings last week, it demonstrates the city's continued commitment to further develop the green bond market through piloting issuances with different parameters, Chan added.

Source: The Standard November 25, 2021 01:13 UTC