Hong Kong launches $701 million two-year digital green bond, term sheet shows

By Reuters News

By Yantoultra Ngui

HONG KONG, Sept 28 (Reuters) - Hong Kong's government launched a HK$5.5 billion ($701 million) two-year digital green bond on Monday, with a 3.8% coupon, according to an updated term sheet.

  • The bond was sold at face value of 100 and will mature on September 29, 2028.

  • The city plans to list it on Hong Kong's stock exchange.

  • The government will use the proceeds to fund or refinance eligible environmental projects under its Green Bond Framework.

  • The bond will be recorded electronically rather than issued as paper certificates. It will use HSBC's HSBA.L Orion digital platform and clear through the Hong Kong Monetary Authority's Central Moneymarkets unit, which is linked to Euroclear and Clearstream.

  • Hong Kong is rated Aa3 by Moody's, AA+ by S&P and AA- by Fitch. The bond is expected to receive the same ratings.

  • HSBC, Bank of China (Hong Kong), Bank of Communications, BNP Paribas, Credit Agricole CIB, ICBC (Asia), JPMorgan and Standard Chartered led the deal.

($1 = 7.8438 Hong Kong dollars)

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