Hong Kong green bond stabilization begins

Published 03/06/2025, 09:26
© REUTERS

LONDON - J.P. Morgan Securities Plc has initiated a stabilization period for the newly issued green bonds by the Government of the Hong Kong Special Administrative Region of the People’s Republic of China, the firm announced today. The bonds, which have an 8-year maturity and are denominated in euros, have been listed on both the London Stock Exchange (LON:LSEG) and the Hong Kong Stock Exchange.

The stabilization period, which commenced today, is expected to last no longer than one month, ending by July 3, 2025. During this time, J.P. Morgan Securities, acting as the stabilization coordinator, alongside other stabilization managers including Bank of China, Credit Agricole (OTC:CRARY) CIB, HSBC, BNP Paribas (OTC:BNPQY), and Citigroup (NYSE:C), may engage in transactions to support the market price of the securities.

The stabilization actions, which are in compliance with EU market regulations, may include over-allotting the securities up to 5% beyond the aggregate nominal amount of the issuance. These measures are intended to prevent price volatility and ensure a stable secondary market for the bonds. However, there is no guarantee that stabilization will occur, and it may end at any time within the stipulated period.

This green bond issuance aligns with a growing trend of environmentally focused financial instruments, as governments and corporations increasingly seek to fund projects with positive environmental impacts. Green bonds specifically earmark proceeds for climate and environmental projects.

The offer and sale of these securities are directed at professional investors and high net worth individuals in the United Kingdom (TADAWUL:4280), with certain restrictions applied to other jurisdictions, including the United States, where the securities have not been registered and cannot be sold without an exemption from registration.

The information regarding this stabilization notice is based on a press release statement. The move by the Government of the Hong Kong Special Administrative Region to issue green bonds highlights the region’s commitment to sustainable financing and development, as well as the increasing global interest in green investments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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