Guangdong will once again issue offshore provincial government bonds in Macau, scheduled at the end of this month, marking the fifth consecutive year the adjacent province is issuing offshore bonds here, the Macau Monetary Authority (AMCM) announced in a statement yesterday.
The renminbi-denominated bonds to be issued at the end of this month will include, for the first time, blue bonds*, as well as specialised bonds aiming to support the organisation of the 15th National Games.
“Renminbi” (“people’s currency”) is the official name of the nation’s legal tender, informally known as “yuan”.
Unchanged from last year, this time the Guangdong Provincial People’s Government will issue offshore renminbi-denominated provincial government bonds worth 2.5 billion yuan in Macau.
Guangdong issued offshore provincial government bonds worth 2.2 billion yuan in Macau in 2021, two billion yuan in 2022, and also two billion in 2023.
According to the statement, the bonds to be issued this time will once again include green bonds**, as well as specialised bonds aiming to support the development of the Guangdong-Macau In-Depth Cooperation Zone in Hengqin.
Green bonds were issued by the Guangdong government in Macau for the first time in 2023, and were once again issued here last year.
Specialised bonds for the zone’s development were issued by the Guangdong government in Macau for the first time last year.
As in the past four years, the offshore provincial government bonds this year will also only be offered to institutional investors, according to the statement.
The statement underlined that the preparation work for the upcoming issuance has been jointly supported by the Ministry of Finance in Beijing and the Guangdong Provincial People’s Government in Guangzhou.
The statement said that the Guangdong government’s upcoming issuance of specialised bonds for the 15th National Games highlights its support for the first large-scale sporting event jointly hosted by Guangdong Province, Hong Kong, and Macau. This issuance, the statement said, also stands as a notable demonstration for the accelerating integration within Guangdong-Hong Kong-Macau Greater Bay Area (GBA) and support for Macau’s integration into the nation’s overall development.
Moreover, the statement said, the continued issuance of green bonds, together with the first issuance of blue bonds, will help diversify financial products in Macau’s bond market, and encourage more issuers to bring green, blue and other sustainable instruments to Macau’s bond market, thereby fostering the green and sustainable development of financial markets across Guangdong Province and Macau under the guiding objectives of carbon peaking and carbon neutrality.
*A blue bond is a type of debt instrument, similar to a green bond, where the funds raised are dedicated exclusively to financing projects that have positive environmental, economic, and climate benefits for the ocean and marine ecosystems. – DeepSeek
**A green bond is a type of loan where the money raised by the issuer is exclusively used to finance or refinance new or existing projects that have positive environmental or climate benefits. Green bonds function exactly like any other traditional bond: an issuer sells the bond to investors, promises to pay periodic interest, and repays the principal amount on a maturity date. The only difference is the “green” label, which creates a legally binding commitment that the capital raised will be used for environmentally sustainable projects. – DeepSeek
This undated handout released by the Macau Monetary Authority (AMCM) yesterday shows its headquarters on Guia Hill.
