Hong Kong raised $1 billion from the sale of its first green bond on Wednesday (15th May), as it looks to establish itself as a centre for green finance. The proceeds from green bonds are invested in environmentally friendly projects. This bond is the first to be issued under Hong Kong’s HK$100 billion ($12.74 billion) green bond program to fund projects around clean transportation, air quality improvement and green buildings. It is one of the largest green bond schemes globally. “The favourable response from global investors indicates not only their recognition of Hong Kong’s credit strength, but also their support of Hong Kong’s determination and efforts in promoting sustainable development and combating climate change,” said Paul Chan, Financial Secretary of Hong Kong. Green bonds account for a small portion of the global bond market but are expected to gain in size, particularly in Asia which has lagged other regions such as Europe.

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Reuters