Hong Kong to raise $770 million in first retail green bond

Hong Kong to raise $770 million in first retail green bond

Bloomberg: Retail investors in Hong Kong will soon be able to buy green bonds for as little as HK$10,000 ($1,281) as the city looks to expand its role as a sustainable finance hub.

The Hong Kong government is selling up to HK$6 billion in green debt directly to investors for the first time, with proceeds used to back nine types of sustainable projects run by the city, Christopher Hui, secretary for financial services and treasury told reporters Tuesday.

Hong Kong joins other issuers including in the UK and Japan that are trying to expand the base of sustainable bond holders by reducing the investment thresholds and selling directly to the public. National Savings & Investments, a UK lender, launched a green savings bond last year that could be purchased for as little as £100 ($135).

The three-year bonds will pay an interest rate tied to inflation or a fixed rate of 2%, whichever is higher. The debt will be sold between March 1 and 11, and with many bank branches closed due to the pandemic, officials are encouraging online sales.