On September 9th, the People's Government of Guangdong Province successfully completed the roadshow for its 2024 offshore renminbi (RMB) local government bonds. Held at the Hong Kong Monetary Authority, this roadshow marked the first one that the Government has conducted in Hong Kong for the issuance of offshore local government bonds, attracting numerous investment institutions from China, the United States, Germany, the United Kingdom, Switzerland, South Korea, etc.
Chen Guohuang, Director General of the Guangdong Provincial Department of Finance, presented to global investors during the roadshow, introducing the economic and social development as well as the credit strength of Guangdong Province. He also shared the province's future development goals and responded to questions of general interest to investors, such as green bond issuance and future offshore issuance plans.
This is the first time that the People's Government of Guangdong Province has issued local government bonds in Hong Kong, with an expected issuance size not exceeding RMB 5 billion. The bonds will be issued in two, three, and five-year tenors. The proceeds of the two-year bonds will be used for projects in Nansha, Guangzhou; the three-year bonds will fund major infrastructural projects in the Pearl River Delta region; and the five-year bonds are green bonds designated for green projects. It is reported that the bonds issued this time have been included in the list of eligible collateral for the Renminbi Liquidity Arrangement of the Hong Kong Monetary Authority. Additionally, the interest income from these bonds will be exempt from Hong Kong's profits tax and stamp duty. These measures are expected to enhance the liquidity of the bonds and attract more investors to participate in the subscription process.
Editor | Liao Ying, Monica, Chen Longyan, James
