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Hainan authorities issue yuan bonds worth $695 mln in Hong Kong

The maturities of these securities are two, three and five years

HAIKOU /China/, September 14. /The authorities of South China's Hainan Province have successfully issued government bonds denominated in the national currency on the Hong Kong stock exchange, worth 5 billion yuan (more than $695 million at the current exchange rate), the Hainan Daily newspaper reported.

According to the newspaper, the maturities of these securities are two, three and five years. The purpose of the issue is to promote sustainable socio-economic development, stimulate the efficient use of ocean resources and help preserve biodiversity. The fixed rates of return on the three types of debentures are 2.45%, 2.53% and 2.7% respectively.

Earlier, Hainan's competent departments made a presentation of these new bonds to investors. The issuer's meeting with potential buyers was attended by Chen Maobo, director of Hong Kong's Finance Department, Xu Zhengyu, head of Hong Kong's Financial Services and Treasury Department, and Chen Weimin, acting president of the Monetary Authority of this special administrative region.

This is Hainan's second yuan bond issue in Hong Kong. The first, also worth 5 billion yuan ($679 million at the exchange rate at the time), was carried out in October 2022. The money raised then from the sale of the two-year bonds was used to finance projects aimed at responsible use of the world's ocean resources. The three-year and five-year securities are to fulfill the Sustainable Development Goals.