The Government announced in 2017 that it would take the lead in arranging the issuance of a green bond to demonstrate the Government’s support for sustainable development and determination to combat climate change, and to promote the development of green finance; and further announced in 2018 that it would launch a Government Green Bond Programme (“GGB Programme”).
On 15 November 2018, the Legislative Council passed a Resolution (i.e. Cap 61F) under section 3 of the Loans Ordinance (Chapter 61 of the Laws of Hong Kong) authorising the Government to borrow up to a maximum principal amount outstanding at any time of HK$100 billion or equivalent under the GGB Programme.
Subsequently, the Government announced in 2021 the plan to double the borrowing ceiling of the GGB Programme to HK$200 billion to allow for more room for piloting the issuance of green bonds that involve more types of currencies, project types and issuance channels, thereby further enriching the green finance ecosystem in Hong Kong.
Pursuant to the passage of a Resolution (i.e. Cap 61H) under section 3 of the Loans Ordinance by the Legislative Council on 21 July 2021, the Government was authorised to borrow up to a maximum principal amount outstanding at any time of HK$200 billion or equivalent under the GGB Programme. The Resolution was published in the Government Gazette and took effect on 23 July 2021, replacing the previous resolution (i.e. Cap 61F).
To further consolidate Hong Kong’s position as a green and sustainable finance hub, it was announced in the 2023-24 Budget that the scope of the GGB Programme would be further expanded to cover sustainable projects. Thereafter, it was set out in the 2024-25 Budget that the Government would set a borrowing ceiling of a total of HK$500 billion for the Infrastructure Bond Programme (“IB Programme”) and GGB Programme to allow more flexibility in quota re-allocation. The sums borrowed will be credited to the Capital Works Reserve Fund 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 by the Legislative Council on 8 May 2024, 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 GGB Programme^. At the same time, with the expansion of the GGB Programme to cover sustainable projects, the GGB Programme was renamed as the Government Sustainable Bond Programme (“GSB Programme”). The Resolution was published in the Government Gazette and took effect on 10 May 2024, replacing the previous resolution (i.e. Cap 61H).
The sums borrowed under the GSB Programme are credited to the Capital Works Reserve Fund to provide funding for sustainable projects of the Government.
The Hong Kong Monetary Authority assists the Government in implementing bond issuance under the GSB Programme.
^ 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.