Linklaters has acted as the international legal advisor of the Ministry of Finance of the People’s Republic of China (MOF) on its offshore issuance of RMB 6bn sovereign green bonds in Hong Kong SAR. This marks the Chinese central government’s first-ever sovereign green bond issuance in Hong Kong.
The issuance comprised two tranches, including three-year and five-year bonds with a coupon rate of 1.42% and 1.56% respectively, each in RMB 3bn. Both tranches have been listed on The Stock Exchange of Hong Kong Limited and are cleared through the Central Moneymarkets Unit in Hong Kong.
The transaction saw strong demand from a diverse range of international investors across various regions and sectors, with total subscriptions reaching RMB 62.4bn, representing 10.4 times the issue size, reflecting the international market’s confidence in China’s sovereign credit and green and low-carbon development.
The Linklaters team was led by partner and Chair of Asia William Liu and capital markets partner Min Fang, with support from Youming Wu and Yanting Sun.
Linklaters’ partner and Chair of Asia William Liu commented:
“We are honoured to have advised on the PRC government’s debut sovereign green bond issuance in Hong Kong. This issuance will further enhance the yield curve for Hong Kong’s offshore RMB bond market and expand cross-border financing avenues for China’s green and low-carbon development, bolstering Hong Kong’s standing as a premier venue for offshore RMB issuance and investment, and as a leading sustainable finance hub in Asia.”
Linklaters has acted as the MOF’s international legal advisor since 2009, advising on all its sovereign bond issuances to international investors to date. With over 50 years’ experience in Hong Kong SAR and across Asia, and drawing on the strength of its fully integrated global platform, the firm has continued to support the MOF on landmark sovereign bond issuances in key international financial centres, further reinforcing Hong Kong SAR’s unique role in connecting China and the international capital markets.
About Linklaters LLP
Linklaters LLP is a leading global law firm, advising the world’s leading banks, corporates and private capital clients on their most important and challenging transactions and assignments. We combine legal expertise with a collaborative and commercial approach to help clients navigate rapidly evolving markets and regulatory environments. Our teams operate at the forefront of all major practice areas and sectors, working as one team globally to enable clients to confidently seize opportunities and navigate risk. With offices in major business and financial centres, we deliver an outstanding service to our clients anywhere in the world.
