HKSAR’s USD2.5 Billion Green Bonds Offering


Allen & Overy has advised the Government of the Hong Kong Special Administrative Region of the People’s Republic of China on the deal. Linklaters advised the underwriters.

Government of the Hong Kong Special Administrative Region of the People’s Republic of China (HKSAR) established its HKD100 billion Global Medium Term Note Programme dedicated to green bond issuances, and issued USD2.5 billion green bonds under the programme.

This is the first 30-year green bond issued by an Asian government, and the longest tenor issued by the HKSAR Government.

The issuance comprises three tranches including USD1 billion 0.625% 5-year bonds, USD1 billion 1.375% 10-year bonds and USD500 million 2.375% 30-year bonds. The issuance has established a comprehensive benchmark curve for potential green bond issuers in Hong Kong and the wider Asia-Pacific region.

The bonds are listed on both the Hong Kong Stock Exchange and the London Stock Exchange, and were offered in a combined Rule 144A/Regulation S transaction to a diverse group of conventional and green institutional investors internationally. The proceeds from the issuance will be used exclusively for eligible projects under the HKSAR Government’s Green Bond Framework which will provide environmental benefits and support the sustainable development of Hong Kong.

Credit Agricole CIB and HSBC acted as Joint Global Coordinators, Joint Lead Managers, Joint Bookrunners and Joint Green Structuring Banks for the Green Bonds offering, and BNP PARIBAS, Citigroup, ICBC (Asia), J.P. Morgan and Standard Chartered Bank acted as Joint Bookrunners and Joint Lead Managers.

The A&O team was led by partners Agnes Tsang (Picture), Jaclyn Yeap and Alex Stathopoulos, with support from Gordon Ng, Charles Chiu and Jiayin Yu.

The transaction was led by Linklaters Hong Kong based capital markets partners William Liu, Michael Ng and Gloria Cheung, with support from counsel Taiki Ki and Christian Felton.

Involved fees earner: Gordon Ng – Allen & Overy; Alex Stathopoulos – Allen & Overy; Agnes Tsang – Allen & Overy; Jaclyn Yeap – Allen & Overy; Jiayin Yu – Allen & Overy; Gloria Cheung – Linklaters; Christian Felton – Linklaters; Taiki Ki – Linklaters; William Liu – Linklaters; Michael Ng – Linklaters;

Law Firms: Allen & Overy; Linklaters;

Clients: BNP Paribas; Citigroup Inc.; Crédit Agricole Corporate and Investment Bank; Hong Kong Government; HSBC; Industrial and Commercial Bank of China; JP Morgan; Standard Chartered Bank;

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Author: Michael Patrini