Hong Kong to sell up to $2.55 billion in retail green bonds this month By Reuters

© Reuters. FILE PHOTO: People enjoy the view of the sunset with a skyline of buildings during a meeting on national security legislation, in Hong Kong, China June 29, 2020. REUTERS/Tyrone Siu/Files / File Photo

HONG KONG (Reuters) – Hong Kong will relaunch its first retail green bond this month as the coronavirus pandemic eases to raise up to 20 billion Hong Kong dollars ($2.55 billion), a the city’s chief financial officer said Sunday.

The Asian financial hub last month delayed a sale worth HK$6 billion due to the rapid spread of COVID-19.

The three-year green bond issue, which includes a new fiscal year quota that started in April, will be worth HK$15 billion, and it can be increased to HK$20 billion if oversubscribed, the official said. Finance Secretary Paul Chan. in a blog post.

The bond will have a yield of 2.5%, down from 2% for the scheduled sale in March, he added, and will be open for subscription by the end of this month.

Hong Kong has stepped up its efforts in recent years to become a leader in environmental and social governance, including establishing working groups with government officials and global companies to develop a talent pool.

But its ambition to become a hub for green and sustainable businesses has been threatened by its stringent COVID border controls, which prevent financial institutions from attracting specialist staff.

($1 = HK$7.8387)

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