Hong Kong’s retail green bonds attract ‘record’ number of subscribers, subscription amounts amid ‘uncertainty in the local stock market’
The total subscription amount received by BOCHK for the notes exceeded ‘bank’s record last year’, executive saysGovernment says the subscription amount totalled about HK$30.20 billion (US$3.85 billion) with about 323,000 applications receivedESG investingMia CastagnonePublished: 9:25pm, 28 Sep, 2023Why you can trust SCMP
Hong Kong’s latest offering of retail green bonds has logged a “record” number of subscribers as well as record subscription amounts, as Hong Kong investors turn towards a safer investment option in a struggling stock market, banks managing the issuance said.
The government, meanwhile, said the subscription amount totalled about HK$30.20 billion (US$3.85 billion) with about 323,000 applications received. The numbers were obtained from placing institutions, a government spokesperson said. The figures are preliminary estimates and the final figure might be adjusted.
The government bonds with a tenor of three years will make an interest payment every six months based on the average rate of the consumer price index over that half-year period. The HK$15 billion notes up for sale guarantee a minimum payment of 4.75 per cent, an increase from last year’s batch that yielded 2.5 per cent. HSBC and Bank of China (Hong Kong) (BOCHK) were appointed co-arrangers for the retail issuance by the government. BOCHK said the notes proved to be attractive for its customers.