The roadshow for the issuance of offshore RMB local government bonds by Hainan Province in Hong Kong completed successfully on October 25, marking the official launch of the first issuance of blue bonds and sustainability bonds by Chinese local governments in the international capital market.

Due to the COVID-19 epidemic, the roadshow was held online in Chinese session and English session. It mainly introduced to investors the credit worthiness and development plans of Hainan Province, envisioned the future development goals and key directions, and responded to their common concerns.

Hainan arranges the bond issuance immediately after the 20th CPC National Congress, an action to implement the spirit of the 20th National Congress and to explore cross-border financing via Hong Kong as an international finance centre.

This is the first time a Chinese local government issues blue bonds and sustainability bonds in Hong Kong. The funds raised will be invested in the projects of marine environment protection, green economic development, and other projects for improving people’s livelihood. This move will further enrich the varieties of offshore RMB bonds, improve the yield curve of Hong Kong RMB bonds, and thus promote the internationalization of RMB and strengthen Hong Kong’s position as a global offshore RMB business hub. Also, it will play a positive role in deepening the financial cooperation between Hainan Province and Hong Kong, promoting green and sustainable development, and delivering carbon peaking and carbon neutrality goals.

Hainan Province will issue offshore RMB local government bonds of 5 billion yuan in Hong Kong by book building, with a maturity of 2/3/5 years. The interest on the bonds and income from the disposal of the bonds will be exempt from Hong Kong profits tax. The bonds have been included by the Hong Kong Monetary Authority in the eligible collateral list for Renminbi liquidity arrangement.

On the roadshow, Shen Danyang, member of the Standing Committee of the CPC Hainan Provincial Committee and Executive Vice Governor of Hainan Province, introduced the progress of development of Hainan Free Trade Port and rich investment opportunities it brings.