Hainan launches RMB 5 billion offshore bonds in Hong Kong
new product
September 15, 2023
HAIKOU, China, Sept. 14, 2023 /PRNewswire/ -- A report from Hainan International Media Center (HIMC):
China's southernmost province Hainan issued offshorebonds (also known as Dim SumBonds) worth 5 billion yuan (US$686 million) in the Hong Kong SAR on September 13, which arelisted on the Hong Kong Stock Exchange.
Certified by the Hong Kong Quality Assurance Agency, the new Hainan bonds include3 billion yuan in two-year bondsfor sustainable development with a coupon rate of 2.45%, 1 billion yuaninthree-year 'green' bondsfocusing on biodiversity with a coupon rate of 2.53%, and 1 billion yuaninfive-year 'blue'bondslabeled for ocean-related projects with a coupon rate of 2.70%.
The bondsale has attracted strong response from investors, withconfirmed orders froma total of 35 accounts from different countries and regions, including policy and commercial banks, asset management firms, and funds. Orders totaled12.9billion yuan (US$1.77 billion) at theirpeak, oversubscribing the bond by 2.58 times.
Settlement of allocated bonds will be handled via the Hainan Free Trade (FT) accounts, a convertible accounting system with RMB as its base currency. These accounts are aimed at accommodatingthe expected increase in cross-border transactions and foreign investment in the Hainan Free Trade Port.
This is the second time for the Hainan government to issue offshore bonds in Hong Kong following last year's successful issuance of 'blue' bonds and sustainable development bonds. This year, Hainan will be the first local government in the Chinese Mainland to test the waters by issuing the nation's first-ever biodiversity-themed 'green' bonds, offering international investors more asset allocation options for RMB bonds.
Proceeds from the sale of the bonds will primarily go toward improving healthcare and education, as well as strengthening marine conservation, environmental monitoring & restoration, and biodiversity protection.
The Hainan governmentis issuing these offshore bonds in order to deepen reform and opening-up,accelerate the implementation of sustainable development strategies, and advance the developmentof the national ecological civilization pilot zone.
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SOURCE Hainan International Media Center (HIMC)
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