London Daily

Focus on the big picture.
Thursday, Sep 18, 2025

Hong Kong sells US$3 billion of green bonds, including first euro issue

Hong Kong sells US$3 billion of green bonds, including first euro issue

Hong Kong’s government priced its first green bond in euros as it plans to issue US$22.5 billion of the sustainable financial instrument over the next five years.

Hong Kong’s government has raised US$3 billion (US$1.47 billion) through a sale of green bonds, pricing a tranche of them in euros for the first time as it builds a multicurrency portfolio of financial instruments to hone the city’s role as Asia’s hub for sustainable finance.

The entire offering of eurobonds and dollar-denominated debt was triple the size of first US$1 billion green bond sold in 2019 and outpaced the US$2.5 billion of 30-year green bond priced in January.

The 20-year tranche of the latest offering was the longest euro-denominated green bond issued by an Asian government, according to the Hong Kong Monetary Authority (HKMA), the city’s de facto central bank. It underscores the city’s HK$175.5 billion (US$22.5 billion) plan for green bonds over the next five years as Hong Kong strives to become an international green financial centre. The government has gone to market with three green bonds since first announcing its green bond programme in 2018.

“The inaugural euro-denominated offering has also allowed us to reach out to a new group of investors, drawing their attention to the sustainability journey of and financial opportunities in Hong Kong, providing momentum for further growth of our financial market,” the Financial Secretary Paul Chan Mo-po said in a news release.

Green bonds are fixed-income financial products designed to fund projects that are environmentally friendly.

Hong Kong plans to increase the use of wind, waste-to-energy and solar power to generate electricity in the coming years, part of the push to reach carbon neutrality by 2050, according to the special administrative region’s (SAR) latest climate action plan unveiled in October.

Proceeds from the green bond sale will go to the city’s Capital Works Reserve Fund to finance or refinance public works projects that provide environmental benefits and support the sustainable development of Hong Kong.

The green bond offering comprised a US$1 billion 10-year tranche, a €1.25 billion (US$1.42 billion) 5-year tranche, and a €500 million 20-year tranche. The bonds are expected to be settled on November 24 and be listed on the Hong Kong and London stock exchanges.

Financial Secretary Paul Chan Mo-po speaks at ‘“Set Sail for GBA – Scheme for Financial Leaders of Tomorrow” kick-off ceremony on Thursday.


“The Hong Kong government continues to be a leader in this space, not just through its own regular green bond issuance, but also through its advocacy and policymaking efforts to develop Hong Kong into a global green finance hub,” said David Liao, HSBC’s co-CEO for Asia Pacific.

The dollar tranche attracted nearly three times more orders than its issuance size, while the 5-year and 20-year euro tranches attracted more than €2.2 billion in orders.

For the dollar tranche, 72 per cent of the overall allocation went to Asian institutional investors while the remaining 28 per cent were snapped up by European investors, the HKMA said. The euro tranches were dominated by European investors, with 27 per cent distributed to Asian investors and the remaining 73 per cent to European entities.

Banks received 63 per cent of the US dollar allocation, with 16 per cent going to fund managers and 21 per cent to central banks, sovereign nationals and others, the HKMA said. Fund managers, private banks and insurance companies were the largest takers of the euro offering, accounting for 56 per cent of the distribution.

“The objectives of establishing the HKSAR as a green financial hub and forging a path for other HKSAR and [Asia-Pacific] issuers to follow as they embark on their respective sustainable initiatives remain firmly in sight,” said Javier Carballo, managing director for Asia-Pacific debt capital Markets at Credit Agricole, the joint global coordinator with HSBC on the offering.

Newsletter

Related Articles

0:00
0:00
Close
Macron and his wife to provide 'scientific photographic evidence' that she is a real woman
US Tech Giants Pledge Billions to UK AI Infrastructure Following Starmer's Call
Saudi Arabia cracks down on music ‘lounges’ after conservative backlash
DeepMind and OpenAI Achieve Gold at ‘Coding Olympics’ in AI Milestone
SEC Allows Public Companies to Block Investors from Class-Action Lawsuits
Saudi Arabia Signs ‘Strategic Mutual Defence’ Pact with Pakistan, Marking First Arab State to Gain Indirect Access to Nuclear Strike Capabilities in the Region
Federal Reserve Cuts Rates by Quarter Point and Signals More to Come
Effective and Impressive Generation Z Protest: Images from the Riots in Nepal
European manufacturers against ban on polluting cars: "The industry may collapse"
Sam Altman sells the 'Wedding Estate' in Hawaii for 49 million dollars
Trump: Cancel quarterly company reports and settle for reporting once every six months
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
US Launches New Pilot Program to Accelerate eVTOL Air Taxi Deployment
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
Hong Kong Industry Group Calls for HK$20 Billion Support Fund to Ease Property Market Stress
Joe Biden’s Post-Presidency Speaking Fees Face Weak Demand amid Corporate Reluctance
Charlie Kirk's murder will break the left's hateful cancel tactics
Kash Patel erupts at ‘buffoon’ Sen. Adam Schiff over Russiagate: ‘You are the biggest fraud’
Homeland Security says Emmy speech ‘fanning the flames of hatred’ after Einbinder’s ‘F— ICE’ remark
Charlie Kirk’s Alleged Assassin Tyler Robinson Faces Death Penalty as Charges Formally Announced
Actor, director, environmentalist Robert Redford dies at 89
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
JD Vance Says There Is “No Unity” with Those Who Celebrate Charlie Kirk’s Killing, and he is right!
Trump sues the 'New York Times' for an astronomical sum of 15 billion dollars
Florida Hospital Welcomes Its Largest-Ever Baby: Annan, Nearly Fourteen Pounds at Birth
U.S. and Britain Poised to Finalize Over $10 Billion in High-Tech, Nuclear and Defense Deals During Trump State Visit
China Finds Nvidia Violated Antitrust Laws in Mellanox Deal, Deepens Trade Tensions with US
US Air Force Begins Modifications on Qatar-Donated Jet Amid Plans to Use It as Air Force One
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
Elon Musk Retakes Lead as World’s Richest After Brief Ellison Surge
U.S. and China Agree on Framework to Shift TikTok to American Ownership
London Daily Podcast: London Massive Pro Democracy Rally, Musk Support, UK Economic Data and Premier League Results Mark Eventful Weekend
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Musk calls for new UK government at huge pro-democracy rally in London, but Britons have been brainwashed to obey instead of fighting for their human rights
Elon Musk responds to post calling for the murder of Erika Kirk, widow of Charlie Kirk: 'Either we fight back or they will kill us'
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
USA: Office Depot Employees Refused to Print Poster in Memory of Charlie Kirk – and Were Fired
Proposed U.S. Bill Would Allow Civil Suits Against Judges Who Release Repeat Violent Offenders
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
French Debt Downgrade Piles Pressure on Macron’s New Prime Minister
US and UK Near Tech, Nuclear and Whisky Deals Ahead of Trump Trip
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
Anesthesiologist Left Operation Mid-Surgery to Have Sex with Nurse
×