China Issues 6 Billion Yuan in Green Sovereign Bonds in Hong Kong, 10.4x Oversubscribed on May 28

According to Jin10, on May 28, China's Ministry of Finance successfully issued 6 billion yuan in green sovereign bonds in Hong Kong. The offering comprised 3 billion yuan in 3-year bonds at 1.42% yield and 3 billion yuan in 5-year bonds at 1.56% yield. Total subscriptions reached 62.4 billion yuan, representing a 10.4 times oversubscription ratio.

The 3-year tranche received 9.8 times oversubscription while the 5-year tranche saw 11.0 times demand. Investors spanned multiple regions and types, with 80% from Asia-Pacific and 20% from non-Asia-Pacific regions. Sovereign and supranational entities, banks, and fund managers accounted for 31%, 47%, and 20% of allocations, respectively. The bonds will be listed on the Hong Kong Stock Exchange.