Bank of China Helps Shenzhen Issue 5 Billion Yuan Offshore RMB Bonds in Hong Kong and Macao

Bank of China assisted the Shenzhen Municipal People's Government in issuing its 2026 offshore RMB local government bonds in Hong Kong and Macao, with a total issuance size of 5 billion yuan. The issuance featured multiple tenors and bond types. Bank of China has led the underwriting and issuance of the Shenzhen Municipal People's Government's offshore RMB bonds for six consecutive years since 2021.

In Hong Kong, Bank of China acted as joint global coordinator and sole ESG structuring advisor, assisting the Shenzhen Municipal People's Government in issuing a five-year 2.5 billion yuan low-carbon city-themed green bond and a ten-year 1.5 billion yuan general bond, priced at 1.51% and 1.81%, respectively. The proceeds will be mainly invested in projects such as rail transit.

In Macao, Bank of China acted as sole global coordinator and sole ESG structuring advisor, assisting the Shenzhen Municipal People's Government in issuing a three-year Greater Bay Area-themed sustainability bond of 1 billion yuan, priced at 1.41%. The proceeds will be invested in projects including water treatment, medical and health care, education, affordable housing, and urban village redevelopment. Investors in this issuance came from policy banks, commercial banks, insurance institutions, fund companies, and private banks in multiple countries and regions, with bookbuilding orders in both Hong Kong and Macao more than nine times covered. Since 2021, Bank of China has assisted the Shenzhen Municipal People's Government in issuing a cumulative 32 billion yuan of offshore RMB local government bonds in the role of sole or joint global coordinator.