Hong Kong Monetary Authority Sets 2.50% Interest Rate for Retail Green Bonds

HKMA Publicizes Curiosity Price for Inexperienced Bonds

The Hong Kong Financial Authority (HKMA), representing the Hong Kong Particular Administrative Area Authorities, has declared the rate of interest for the fifth curiosity fee of its retail inexperienced bonds due in 2025. In accordance with the HKMA, this rate of interest has been set at 2.50% every year, decided as the upper of the prevailing floating and stuck charges.

Particulars of the Curiosity Price Dedication

The retail inexperienced bonds, recognized by Challenge Quantity 03GR2505R and Inventory Code 4252, are a part of the Authorities Sustainable Bond Programme. The curiosity fee is scheduled for November 18, 2024. The HKMA’s announcement on November 4, 2024, outlined the floating fee at 1.83% and the mounted fee at 2.50%, resulting in the choice of the mounted fee because the relevant rate of interest.

Background on Hong Kong’s Inexperienced Bond Initiative

The retail inexperienced bonds are a part of Hong Kong’s broader initiative to advertise sustainable finance. The Authorities Sustainable Bond Programme, previously often known as the Authorities Inexperienced Bond Programme, goals to assist environmentally helpful initiatives and initiatives. This collection of bonds offers buyers with the chance to contribute to sustainable growth whereas receiving a set revenue.

Market Implications

The setting of the rate of interest at 2.50% displays the present financial circumstances and inflation charges in Hong Kong. The Client Worth Index, which signifies year-on-year charges of change, confirmed an arithmetic common of 1.83% from April to September 2024. This aligns with the HKMA’s choice to decide on the upper mounted fee for bondholders. For extra detailed data, go to the official [Hong Kong Monetary Authority](https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/11/20241104-4/) web site.

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