Hong Kong raises $6 bln in multi-currency green bonds in Asian record - term sheets

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Adds deal milestone and global green bond issuance volumes

By Scott Murdoch

SYDNEY, June 1 (Reuters) -Hong Kong has raised$6 billion in multicurrency green bonds, according to term sheets seen by Reuters, in a record transaction of its kind across Asia.

The city's government carried out the transaction in dollars, euros and offshore Chinese yuan, the second such deal carried out this year for Hong Kong.

At $6 billion, the transaction is the largest ever ESG related bond in Asia, eclipsing the a deal that raised $5.75 billion in Hong Kong in January.

The Hong Kong Monetary Authority (HKMA) did not immediately respond to a request for comment.

The deal raised $2.25 billion in dollar bonds with three-, five- and 10-year tranches, according to a term sheet seen by Reuters.

The euro transaction consisted of four- and nine-year bonds that raised 1.5 billion euros ($1.6 billion), a separate term sheet showed.

An offshore yuan tranche of two-, five- and 10-year bonds raised 15 billion yuan ($2.2 billion).

Hong Kong raised $5.75 billion in a multicurrency deal in January which the HKMA said at the time was the biggest ever in Asia.

The city's sale of nearly $11.8 billion worth of green bonds in 2023 makes it the second-busiest sovereign issuer this year behind Italy and ahead of Germany, Refinitiv data showed.

Globally there has been $44.4 billion worth of green bonds sold in 2023, the data showed.

($1 = 0.9084 euros)

($1 = 6.9121 Chinese yuan renminbi)

Reporting by Scott Murdoch in Sydney; Editing by Tom Hogue and Gerry Doyle


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