Hong Kong elevates position as Asia’s bond issuance beacon with new HK$500 billion programme


28th February 2024 – (Hong Kong) Hong Kong consolidates its stature as the premier bond market leader in Asia, marking its seventh successive year at the pinnacle of international bond issuance volumes. The financial hub’s latest budgetary manoeuvres signal a strategic expansion of the Green Bond Programme and the inception of the Infrastructure Bond Scheme, aimed at accelerating pivotal infrastructure projects to bolster the economy and enhance the quality of life for its residents.

In a decisive move to augment economic agility, authorities have proposed a substantial HK$500 billion borrowing ceiling, encompassing both the Green Bond Programme and the Infrastructure Bond Scheme. This strategic financial framework is meticulously crafted to enhance quota flexibility, thereby streamlining capital allocation for infrastructure endeavours.

Funds procured under this expansive borrowing umbrella are earmarked for direct infusion into the Capital Works Reserve Fund. This targeted allocation is expected to catalyse investment into ventures with the potential to underpin Hong Kong’s long-term development trajectory.

The new budgetary outline envisages a phased replacement of the existing Government Bond Programme with these two streamlined initiatives. The forthcoming fiscal year of 2024-25 is set to witness the issuance of bonds valued at HK$120 billion. This tranche will include a HK$70 billion retail offering, intricately composed of HK$50 billion in Silver Bonds and an additional HK$20 billion bifurcated between green bonds and infrastructure bonds.