Hong Kong’s huge multicurrency bond deal oversubscribed by global investors
In a resounding show of global investor confidence, the Hong Kong government has successfully issued HK$27 billion (US$3.44 billion) worth of green and infrastructure bonds across four currencies, reinforcing its ambition to become Asia’s preeminent hub for sustainable finance.
The multicurrency deal—denominated in Hong Kong dollars, yuan, US dollars, and euros—attracted total orders nearing HK$237 billion, achieving oversubscription rates ranging from 3.3 to 12.5 times. According to the Hong Kong Monetary Authority (HKMA), demand came from over 30 markets across Asia, Europe, the Middle East, and the Americas, with participation from sovereign wealth funds, central banks, asset managers, insurers, and private banks.
A First for 30-Year Hong Kong Dollar Bonds
This was the government's inaugural issuance of a 30-year Hong Kong dollar bond—the longest tenor ever offered—which raised HK$1.5 billion at a coupon of 3.85%. Its success signals rising investor confidence in Hong Kong's long-term fiscal health and monetary stability.
The sale also included 20- and 30-year yuan-denominated notes, both doubled in size to RMB4 billion (US$557 million each) in response to strong demand. These were priced at 2.60% and 2.70%, respectively—underscoring the continued appetite for long-duration RMB assets in offshore markets.
Green Capital for a Sustainable Future
The proceeds will be deployed under two policy frameworks: the Green Bond Programme and the newly launched Infrastructure Bond Programme. Financial Secretary Paul Chan emphasized that the green bonds are intended to “attract and channel market capital to support green projects and promote sustainable development,” while the infrastructure bonds are key to accelerating the Northern Metropolis—a massive 30,000-hectare urban development in the New Territories.
Launched in 2021, the Northern Metropolis aims to create a new growth engine integrating housing, innovation, and transport infrastructure. The bond issuance marks a step-change in how Hong Kong is mobilizing capital to support climate-aligned, future-facing urbanization.
What Global Markets Are Saying
Eugene Ng of HSBC said the strong multi-currency demand “demonstrates Hong Kong’s robust credit fundamentals,” and will deepen liquidity in both Hong Kong dollar and offshore yuan curves. David Yim of Standard Chartered added that the 30-year HKD tranche’s oversubscription “reflects long-term investor confidence in the Hong Kong dollar.”
The bonds carry sovereign-level ratings—AA+ from S&P and AA- from Fitch—reinforcing Hong Kong’s standing in global capital markets despite macroeconomic uncertainties.
Bloomberg data shows that year-to-date Hong Kong dollar public bond issuance has reached HK$146.3 billion, an 18% increase from the same period last year—evidence of deepening market liquidity and investor trust.
Why It Matters for Institutional Investors
For asset managers and sovereign investors seeking high-grade ESG instruments, this issuance provides rare access to long-dated, multicurrency sovereign risk anchored in Asia. It also affirms Hong Kong's strategic role in greening capital flows within the Greater Bay Area and beyond.
As governments worldwide turn to capital markets to finance climate and infrastructure goals, Hong Kong is positioning itself as a credible and liquid platform to intermediate sustainable capital at scale.
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