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Guangdong will issue its first ‘green’ offshore bonds in Macao this month

The local government hopes issuances of both treasury and provincial-level bonds will become ‘routine practice’ as the SAR transforms itself into a modern finance hub.

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The local government hopes issuances of both treasury and provincial-level bonds will become ‘routine practice’ as the SAR transforms itself into a modern finance hub.

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UPDATED: 21 Dec 2023, 11:27 pm

Guangdong’s provincial government will issue its first offshore “green” bonds in Macao by the end of August, the Government Information Bureau (GCS) announced on Tuesday.

This type of bond specifically funds projects that are good for the environment. The ones issued by Guangdong will have a three-year maturity period. A second tranche of renminbi-denominated provincial government bonds will be issued at the same time, with a two-year maturity period.

The two tranches are expected to have a combined issuance size of two billion yuan and will only be available to “institutional investors,” GCS said.

[See more: Macao is home to the world’s first ‘DRO’ exchange]

The statement did not confirm what interest rates would be applied to either tranche.

Guangdong has issued two prior rounds of offshore provincial government bonds in Macao – in 2021 and 2022. Their interest rates were at 2.68 and 2.65 percent, respectively.

The authorities said the bonds “showcase [Guangdong’s] support for the development of a modern financial industry in Macao, and [its] recognition of Macao’s function as a green-financing platform.”

The government also noted that it was working to develop its finance industry, which made the issuance of both treasury bonds and provincial-government bonds in Macao a “routine practice.”

 

UPDATED: 21 Dec 2023, 11:27 pm

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