The Hong Kong Monetary Authority has announced a 2.50% interest rate for the fifth interest payment of its retail green bonds series due in 2025. The interest payment is scheduled for November 18, 2024, and the HKMA’s announcement on November 4, 2024, outlined the floating rate at 1.83% and the fixed rate at 2.50%, leading to the selection of the fixed rate as the applicable interest rate.
The retail green bonds are part of Hong Kong’s broader initiative to promote sustainable finance through the Government Sustainable Bond Programme, which aims to support environmentally beneficial projects and initiatives. This series of bonds offers investors the opportunity to contribute to sustainable development while receiving a fixed income.
The interest rate set reflects current economic conditions and inflation rates in Hong Kong, with the Consumer Price Index showing an arithmetic average of 1.83% from April to September 2024.
