Hong Kong's huge multicurrency bond deal oversubscribed by global investors
The Hong Kong government sold HK$27 billion (US$3.44 billion) in multicurrency green and infrastructure bonds to support the development of the Northern Metropolis, boosting the city's reputation as a sustainable finance hub.
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The notes, denominated in Hong Kong dollars, yuan, US dollars and euros, drew strong demand from investors globally amid an uncertain interest rate environment. The sale attracted orders totalling nearly HK$237 billion, translating into subscription ratios of between 3.3 and 12.5 times the size of the bonds, according to a statement from the Hong Kong Monetary Authority on Wednesday.
The offerings, which fall under the government's sustainable bond programme and a newly established infrastructure bond programme, included a range of maturities of up to 30 years. It was the first time the government offered a 30-year Hong Kong dollar bond, which was also its longest tenor ever.
The size of the 20-year and 30-year yuan notes, which were introduced last year, was doubled in response to robust investor demand.
The Hong Kong government sold bonds denominated in yuan and US dollars among other currencies on Wednesday. Photo: AFP
'The issuance of green bonds by the Hong Kong government aims to attract and channel market capital to support green projects [and promote] sustainable development in Hong Kong,' said Financial Secretary Paul Chan Mo-po.
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