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ESG Investment

Hong Kong banks directed to issue green bonds in major currencies

Hong Kong has mandated banks to issue green notes in US dollars, euros, and offshore yuan, marking its latest initiative to establish itself as a leading green finance hub. The Hong Kong Monetary Authority (HKMA), representing the sale, has directed banks to arrange investor calls starting from July 16 for potential offerings, as per a source familiar with the matter who preferred anonymity.

The city has been accelerating its bond sales under a government sustainable bond programme aimed at promoting the growth of green and sustainable finance. According to the programme’s website, the government has set a borrowing cap of HK$500 billion (S$86 billion) for the fiscal year 2024-2025, earmarked for green and sustainable projects.

Earlier this year, Hong Kong successfully priced US$750 million in green bonds across four currencies. In 2023, it conducted Asia’s largest-ever green debt offering, raising the equivalent of US$6 billion through sustainable bonds.