World Bank Issues Its First Hong Kong Dollar Green Bond | WPN World People News

The World Bank (International Bank for Reconstruction and Development, IBRD, rated Aaa/AAA), priced its first ever green bond denominated in Hong Kong dollars (HKD) and the first green bond ever issued by a supranational issuer in Hong Kong SAR, China. HSBC Bank plc and Société Générale were the lead managers for this green bond transaction.

The HKD 1 billion 2-year green bond offers a coupon of 2.14% per annum with an April 23, 2020 maturity date and has an issue price of 100%.

“We are extremely pleased to issue our first Hong Kong dollars green bond. The bond was issued based on demand from domestic investors interested in investing in the World Bank’s first green Hong Kong dollar (HKD) denominated bond. HKD is the 19th currency for World Bank green bonds. This transaction also shows that demand for green bonds continues to grow, especially for safe and liquid instruments, from a broadening investor base. Investors, indeed, desire to connect their investments to development solutions that address climate change and make a difference for people around the globe,” said Arunma Oteh, World Bank Vice President and Treasurer.

With this latest transaction, the World Bank has issued more than 135 green bonds in 19 currencies, totaling almost USD 10.5 billion equivalent since its inaugural issue in 2008. World Bank Green Bonds offer investors an opportunity to support environmental solutions through a bond product that benefits from the triple-A credit strength of the World Bank. World Bank Green Bonds help support the financing of projects in member countries that meet specific criteria for low carbon and climate resilient growth, seeking to mitigate climate change or help affected people adapt to it. The types of eligible projects include renewable energy installations, energy efficiency projects, and new technologies in waste management and agriculture that reduce greenhouse gas emissions and help finance the transition to a low carbon economy. They also include financing for forest and watershed management and infrastructure to prevent climate-related flood damage and build climate resilience.

Source: World Bank