Linklaters, Fangda Partners and A&O Shearman advise on the China Ministry of Finance’s (MOF) first issuance of RMB6 billion (USD886 million) in sovereign green bonds in Hong Kong.
The MOF issued two tranches of the RMB-denominated sovereign green bonds in Hong Kong on 28 May, which is its second such offering. In April 2025, the MOF issued its first RMB-denominated sovereign green bonds in London, which was also valued at RMB6 billion.
The Hong Kong issuance comprises RMB3 billion of three-year bonds with a coupon rate of 1.42%, and RMB3 billion of five-year bonds with a coupon rate of 1.56%.
Both tranches are listed on the HKEX, with total subscriptions reaching RMB62.4 billion, representing 10.4 times the issue size.
Joint lead managers include Bank of China, Bank of Communications, Barclays, CICC, CITIC Securities, Crédit Agricole CIB, HSBC, ICBC and Standard Chartered Bank.
Linklaters acted as international legal adviser to the MOF, with William Liu, partner and chair of Asia, and capital markets partner Fang Min jointly leading the team.
Fangda counselled the joint lead managers on PRC law, with partner Huo Wanhua leading the team. A&O Shearman advised the joint lead managers on Hong Kong legal matters, with partner Agnes Tsang leading the team.
Paul Chan, Hong Kong’s financial secretary, said in a press release: “This issuance will further enhance the yield curve for Hong Kong’s offshore RMB bond market, provide a new investment benchmark for international capital, and attract more cross-boundary RMB financing and trading activities to Hong Kong. It will also support the efficient matching of global capital with the country’s high-quality green projects. By giving strong impetus to the green transition while delivering reasonable returns for investors, the issuance will help attract more long-term capital into the green sector and promote sustainable development.”