At the beginning of 2023, issuers around the world are rushing to sell debt as borrowers hope to take advantage of the drop in bond yields over the past couple of months
Hong Kong sold the equivalent of $5.8 billion in green bonds denominated in three currencies on Jan. 4 as debt markets rebounded amid a global glut of deals.
The city valued dollar-denominated bonds of four maturities at $3 billion, a two-tranche bond at €1.25 billion and an offshore portion at 10 billion yuan.
Investors reportedly sent in bids to buy more than $25 billion worth of dollar bills. This allowed the issuer to lower bond prices, while it also saw a strong response to its new green bonds in other currencies. The final yields of 3% and 3.3%, respectively, were set on the 2-year and 5-year offshore RMBS. This is as much as 50 basis points lower than the original forecast.
At the start of 2023, issuers around the world are rushing to sell debt as borrowers hope to take advantage of the drop in bond yields over the past couple of months. The beginning of the year is historically a busy period for new bond sales. For Asian issuers, the dollar pullback at the end of 2022 has also proven to be a convenient time to sell bonds denominated in that currency.