【Government Bond Issuance】 The government issues institutional green bonds and infrastructure bonds worth HKD 27.6 billion, oversubscribed 7.6 times. HSBC: The issuance provides new pricing references and improves the long-end benchmark yield curve.

The government announced on Friday (8th) the issuance of green bonds and infrastructure bonds by the issuing institutions, successfully pricing approximately HKD 27.6 billion equivalent of green bonds and infrastructure bonds under the Government Sustainable Bond Plan and Infrastructure Bond Plan, covering HKD, RMB, USD, and EUR. This issuance attracted extensive participation from global investors from over 30 markets across Asia, Europe, the Middle East, and the Americas, with a total subscription amount of about HKD 239 billion equivalent, approximately 8.6 times the issuance amount.

After an online roadshow held on May 6, 2026, these green bonds and infrastructure bonds were priced on May 7, 2026. The relevant yields are as follows:

The government indicated that the issuance scale of the 30-year HKD bonds is twice that of the first issuance last year, and the long-term RMB bonds of 20 and 30 years, first launched in 2024, continue to be well received by investors.

Paul Chan: Bond issuance funds North District development to accelerate public benefit projects completion

Financial Secretary Paul Chan said that the government’s issuance of infrastructure bonds funds important infrastructure projects, including those in the Northern Metropolis, enabling projects that benefit economic development and people’s livelihoods to be completed more quickly; among them, green bonds also support green and low-carbon transition projects, and strengthen Hong Kong’s development as a green and sustainable financial center.

Paul Chan stated: “This time, the SAR government continues to issue longer-term HKD and RMB bonds, and increases issuance amounts to meet institutional investors’ demand for long-term bonds, while promoting the development of Hong Kong’s fixed income and currency markets. Among them, the RMB bonds issued will further enrich offshore RMB investment products, improve the offshore RMB yield curve, and help advance RMB internationalization.”

He also said: “Global institutional investors responded enthusiastically to subscribing to this batch of government bonds, fully reflecting their confidence in Hong Kong’s development prospects.”

This batch of green bonds and infrastructure bonds is scheduled for settlement on May 14, 2026, and will be listed on the Hong Kong Stock Exchange and the London Stock Exchange. The green bonds and infrastructure bonds are rated AA- by Fitch, Aa3 by Moody’s, and AA+ by S&P Global. The Hong Kong Monetary Authority issued this batch of green bonds and infrastructure bonds on behalf of the Hong Kong government.

The green bonds and infrastructure bonds are issued respectively under the Hong Kong SAR Government’s Green Bond Framework and Infrastructure Bond Framework. The funds raised will be allocated to the Basic Engineering Reserve Fund and used to finance or refinance eligible green and infrastructure projects according to the relevant frameworks.

HSBC: Issuance Complements the Long End of the Benchmark Yield Curve

As one of the joint global coordinators, HSBC’s Managing Director of Debt Capital Markets Greater China, Wu Fubin, said that the transaction highlights Hong Kong’s ability to continuously attract deep and diversified global liquidity across different currencies and tenors, reflecting investors’ confidence in Hong Kong’s resilient economy and its capacity to face challenges. The USD and 8-year EUR bonds in this transaction achieved the narrowest spreads in Hong Kong bond history, demonstrating Hong Kong’s credit strength gaining broader recognition in the international market.

He continued that this issuance provides new pricing references and improves the long end of the benchmark yield curve, helping other issuers in the market enhance pricing efficiency, and encouraging corporate and financial institution bond issuance, further deepening market liquidity and promoting product innovation. The government’s continued high-quality issuance also strengthens market infrastructure, including enhancing underwriters’ and market makers’ capabilities, risk management, and overall market professionalism.

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