Hong Kong plans to issue green yuan bonds
HONG KONG – The Hong Kong Special Administrative Region government plans to issue renminbi-denominated green bonds to further strengthen Hong Kong’s status as an offshore RMB hub and green financial center, a senior official said.
The move shows the SAR’s strong promotion of green finance development, and it will encourage more mainland Chinese investors to issue offshore green bonds and accelerate low-carbon construction, said Tuesday. analysts.
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SAR government to issue RMB green bonds after successful issuance of US dollar and euro denominated bonds earlier this month, Hong Kong Financial Secretary Paul Chan Mo-po wrote in his blog on Sunday on the SAR government website.
Fitch Ratings has assigned the RMB-denominated bonds offered by Hong Kong an “AA-” rating. Proceeds from the bonds will be used to fund or refinance green projects as reported under the government’s green bonds, the agency said in a rating action commentary released on Monday.
Meanwhile, local authorities plan to issue retail green bonds, which will allow local residents to purchase such a debt instrument and receive returns on green economic development, Chan said.
“We will adopt the common taxonomy jointly launched by China and the European Union,” he said. This will provide unified standards for the financial sector to identify green financial activities.
The SAR government said on Thursday it had issued green bonds denominated in US dollars and euros, equivalent to $ 3 billion in total.
It was the first time that the SAR had issued bonds denominated in euros. Among them, 20-year bonds have the longest maturity of all euro green government-issued bonds in Asia, according to the SAR government website.
The SAR government proposed to create a green bond framework in the 2018-19 annual budget budget, which clarified the local authority’s intention to promote green bond issuance and channel funds towards low-carbon economic development.
Earlier this year, the fiscal budget raised the cap on green bond issuance to HK $ 200 billion ($ 25.67 billion), Chan said.
The International Platform on Sustainable Finance Taxonomy Working Group, co-chaired by the European Union and China, released the report “Common Taxonomy: Climate Change Mitigation” on November 4. activity mapping and comparison of taxonomies of EU and Chinese activities to tackle climate change risks, according to the task force report.
Eddie Yue, Managing Director of the Hong Kong Monetary Authority, told the 2021 ESG and Green Finance Opportunities Forum that Hong Kong’s financial regulators aim to adopt the Common Ground Taxonomy and Domains of study that can be adapted and applied locally.
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