The city is offering benchmark-sized dollar bonds across four tenors, sources say. It’s also marketing green notes in the offshore yuan that will mature in two and five years.
HONG KONG: Hong Kong began marketing multi-currency offshore green bonds, adding to the global rush of deals as borrowers take advantage of a market recovery.
The city is offering benchmark-sized dollar bonds across four tenors, according to people familiar with the matter, who asked not to be identified because they’re not authorised to speak about it.
It’s also marketing green notes in the offshore yuan that will mature in two and five years, respectively, said the people.
The government also picked banks to market euro bonds.
The first week of January is proving to be busy for issuers globally, who are taking advantage of a drop in spreads to reduce their funding costs.
For offshore issuers in Asia, the US dollar’s depreciation has also been helpful.
Fixed income markets incurred heavy losses last year as the US Federal Reserve raised interest rates, prompting issuers to stay on the sidelines.
But they recovered somewhat late in 2022, with the spread on dollar-denominated bonds in Asia outside Japan now the narrowest since September. — Bloomberg
