GBA’s first dual-currency offshore green bond issued

Guangdong-Hong Kong-Macau Greater Bay Area’s first dual-currency international green bond was successfully issued recently.
The bonds include 450 million US dollars of overseas senior bonds and 800 million yuan of green senior bonds, marking the first dual-currency senior unsecured bonds of state-owned non-financial enterprises in Guangdong Province.

Guangdong-Hong Kong-Macau Greater Bay Area’s first dual-currency international green bond was successfully issued recently.

The bonds include 450 million US dollars of overseas senior bonds and 800 million yuan of green senior bonds, marking the first dual-currency senior unsecured bonds of state-owned non-financial enterprises in Guangdong Province.

The dual-currency bonds will be listed in Hong Kong and Macao at the same time and will be issued by Zhuhai Dahengqin Investment Co., Ltd.

This is also the first time that Guangdong-Hong Kong-Macau Greater Bay Area and local state-owned enterprises in the free trade zone that have issued green bonds in the international market.

Among them, the amount of offshore RMB green bonds issued is 800m yuan with a maturity of two years and a coupon rate of 4.6 per cent, and US dollar bonds with a maturity of US $450 million with a maturity of three years and a coupon of 3.8 per cent.

The bonds have been subscribed by investors enthusiastically, and the orders obtained within 1 hour of the opening of the book have already exceeded the target issuance scale, with US dollar bonds exceeding US $2.2 billion and RMB bonds exceeding 2.3 billion RMB and oversubscription multiple of US dollars and RMB exceeding 4.7times and 2.8times respectively at peak time.

This is the first time that Dahengqin has made its debut in the offshore bond market after issuing dim sum bonds in 2014.

The simultaneous dual-currency listing of the bonds in Hong Kong and Macao is not only one of the important benchmarks for Hengqin New area’s determination on green development and implementing the demonstration area of deep cooperation between Guangdong, Hong Kong and Macao, but also an important step for Hengqin New area to strengthen cooperation between domestic and foreign capital markets and broaden financing channels.

It is of positive significance to enhance the level of regional financial cooperation between Guangdong, Hong Kong and Macao, to promote the integration of green financial markets in the GBA, help Hong Kong and Macao integrate into the overall situation of national development, further consolidate Hong Kong’s status as an international financial center, and to promote the moderately diversified economic development of Macao.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/06/07/gba-s-first-dual-currency-offshore-green-bond-issued/.

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