HK Government announces subscription and allocation results of retail green bond
According to the subscription information submitted by placing banks and Hong Kong Securities Clearing Company Limited (HKSCC), as at the close of the subscription period at 2pm on September 28, 2023, 321 018 valid applications were received for a total of HK$30,003,740,000 in principal amount of bonds.
A breakdown of valid applications is as follows:
| Total number of valid applications | Total amount of valid applications (HK$) | |
| Placing banks | 275 733 | 27,204,460,000 |
| HKSCC (including the subscription applications made through securities brokers) | 45 285 | 2,799,280,000 |
| Total | 321 018 | 30,003,740,000 |
The final issuance amount of the retail green bond is HK$20 billion, higher than the target issuance size of HK$15 billion. Allocation is conducted in accordance with the mechanism set out in the Issue Circular dated September 18, 2023. The valid applications received have been allocated different amounts of bonds up to a maximum of nine lots. There are a total of 184 021 applications for eight or fewer lots. They will be allocated the full amounts applied for. The remaining 136 997 applications (i.e. those applying for more than eight lots) will be allocated eight lots each and then entered into a ballot. Of these applications, 4 187 will be allocated one additional lot.
The retail green bond will be issued on October 10, 2023, and listed on the Stock Exchange of Hong Kong on October 11, 2023. Notifications on individual allocation results, applicable subscription moneys and amounts of any refund of application moneys will be made by the placing banks and HKSCC in accordance with the schedule set out in the Issue Circular.
The Financial Secretary, Mr Paul Chan, said, "This batch of retail green bond issued by the Hong Kong Special Administrative Region Government offers members of the public investment options with steady returns, and continues to be well received by the public. We will continue to work with the regulators and stakeholders in the industry to enrich the green and sustainable finance ecosystem in Hong Kong, further facilitate market development and promote green transformation with the public."
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