The Hong Kong Monetary Authority said yesterday that the rate for the second interest payment on the government retail green bond due 2025 is 2.5 percent per annum, which is much lower than the rate on time deposits currently offered by local banks.

The inaugural three-year retail green bond of HK$20 billion issued in May 2022 pays interest every six months at a rate linked to inflation in Hong Kong, subject to a minimum of 2.5 percent.

The Hongkong and Shanghai Banking Corporation, the Bank of China (Hong Kong) (2388), and Standard Chartered Hong Kong, are all offering 3.4 percent for 12-month deposits of a minimum of HK$10,000 from new funds to selected customers. And China Construction Bank (Asia) is offering 20 percent interest rate for a seven-day time deposit of a minimum of HK$500,000 to customers who have new deposits of at least HK$1 million in the bank and invest over HK$500,000 in certain products.

https://www.thestandard.com.hk/section-news/section/2/252151/Green-bond‘s-rate-not-that-interesting

Category: Hong Kong