The Financial Secretary proposed in the 2023-24 Budget the setting up of the Infrastructure Bond Programme (“IB Programme”) to enable better management of the cashflow needs of major infrastructure projects and facilitate their early completion for the good of the economy and people’s livelihood. Thereafter, it was set out in the 2024-25 Budget that the Government will set a borrowing ceiling of a total of HK$500 billion for the IB Programme and Government Green Bond Programme (“GGB Programme”) to allow more flexibility in quota re-allocation. The sums borrowed will be credited to the Capital Works Reserve Fund (“CWRF”) for investment in projects which are conducive to long-term development.
Pursuant to the passage of a Resolution (i.e. Cap 61I) under section 3 of the Loans Ordinance (Chapter 61 of the Laws of Hong Kong) by the Legislative Council on 8 May 2024, the GGB Programme has been renamed as the Government Sustainable Bond Programme (“GSB Programme”) and the Government is authorised to borrow up to a maximum principal amount outstanding at any time of HK$500 billion or equivalent under the IB Programme and GSB Programme^. The Resolution was published in the Government Gazette and took effect on 10 May 2024.
The sums borrowed under the IB Programme are credited to the CWRF to provide funding for Government infrastructure projects. The IB Programme covers projects under the Government’s capital works programme of the CWRF (except for those that have been or are expected to be included in the GSB Programme), including projects under major infrastructure initiatives. The Hong Kong Monetary Authority assists the Government in implementing bond issuance under the IB Programme.
For details on the GSB Programme, kindly refer to the webpage here.
^ The IB Programme and GSB Programme are independent of the Government Bond Programme. With different legal backing for the establishment of the Government Bond Programme, it has separate borrowing ceiling and proceeds management from the IB Programme and GSB Programme.