The People’s Government of Shenzhen Municipality successfully issued RMB 1 billion (hereinafter referred to as RMB) offshore RMB-denominated municipal government bond today (9 September) in Macao Special Administrative Region. This is the first issuance of the offshore RMB-denominated municipal government bond by Shenzhen Government, and the first issuance of green bond dedicated to combating climate change in Macao. The Monetary Authority of Macao congratulated on the successful bond issuance and expressed its gratitude to the Ministry of Finance of the People’s Republic of China and the People’s Government of Shenzhen Municipality for their support in the development of new financial businesses in Macao.

This bond issuance is targeted at professional investors with an issue size of 1 billion, a tenor of 3-year, and a coupon rate of 1.74%. The funds raised will be used for clean transportation projects in Shenzhen Municipality. Additionally, the green bond has received pre-issuance stage certification from the Hong Kong Quality Assurance Agency (HKQAA). This issuance of municipal government bond has drawn market attention and was oversubscribed.

Against the backdrop of deepening financial cooperation in the Guangdong-Hong Kong-Macao Greater Bay Area, the first issuance of offshore RMB municipal government bond by the Shenzhen Municipality in Macao is a new breakthrough for the Shenzhen-Macao cross-border financial cooperation. It also marks another major milestone in the development of Macao’s bond market. Meanwhile,this issuance fully demonstrated that the Macao bond market can serve as an offshore financing platform for the municipal governments and enterprises in the Mainland, thereby facilitating the synergistic development of green and sustainable finance through the joint efforts by Shenzhen Municipality and Macao.