Hong Kong’s latest retail green bond offering receives ‘positive’ response in low interest rate environment
The notes, with a tenor of three years, will make an interest payment every six months and guarantee a minimum payment of 4.75 per cent, higher than last year’s 2.5 per centLocking in guaranteed returns at a time when many time deposit interest rates are falling ‘is attractive to retail investors’, BOC (HK) executive saysBanking & financeMia CastagnonePublished: 8:31pm, 18 Sep, 2023Why you can trust SCMP
The notes’ minimum investment amount is HK$10,000, and Hong Kong residents are able to subscribe to as much as HK$500,000 worth through securities brokers, banks and the Hong Kong Securities Clearing Company. The subscription period will run until 2pm local time on September 28, and the bonds will be issued on October 10 before listing on the Hong Kong stock exchange the next day.
“The yield of the new batch of retail green bonds is attractive,” Citibank spokesperson said. “The first-day subscription response is positive, with the subscription number meeting our expectations.”
Green bonds are fixed-income financial products designed to fund projects that are environmentally friendly. The new notes, as well as other financing instruments launched under the government’s green bond programme, aim to enhance the government’s sustainable investment offerings and promote green finance.