Guangdong will issue offshore provincial government bonds in Macau next month, marking the sixth consecutive year the neighbouring province has done so, the Monetary Authority of Macao (AMCM) announced in a statement yesterday.
As with last year, the renminbi-denominated issuance will include green bonds*, blue bonds*, and specialised bonds aimed at supporting the development of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin.
Renminbi (“people’s currency”) is the official name of the nation’s legal tender, commonly known as the yuan.
Unchanged from 2024 and 2025, the Guangdong Provincial People’s Government will issue 2.5 billion yuan worth of offshore provincial government bonds in Macau this year. Previous issuances stood at 2.2 billion yuan in 2021, and 2.0 billion yuan in both 2022 and 2023.
As in the past five years, the bonds will be offered exclusively to institutional investors.
Macau’s quasi-central bank noted that preparatory work by the Guangdong provincial government for the upcoming offering has been supported by the Ministry of Finance in Beijing. The issuance will comprise tranche options with two-year, three-year, and five-year maturities.
The statement highlighted that Guangdong’s sixth consecutive bond issuance underscores ongoing support from both the Central People’s Government and Guangdong provincial authorities for Macau to expand its bond market, foster a financial sector with “special features”, and advance its economic diversification strategy.
It added that the continued offering of Hengqin-themed bonds is a key initiative to deepen Guangdong-Macau cooperation and integrate the region into national development plans. Furthermore, the inclusion of green and blue bonds will help diversify Macau’s financial market while connecting sustainable projects across the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) with international capital.
*A green bond is a fixed-income instrument specifically designed to raise capital for climate and environmental projects, such as renewable energy, clean transportation, and sustainable water management. Issued by governments, banks, or corporations, these debt securities function like traditional bonds but require the issuer to strictly allocate the proceeds towards verified eco-friendly initiatives. In return, investors gain a reliable financial yield while contributing directly to sustainability goals and the global transition to a low-carbon economy. – Gemini
**A blue bond is a specialised fixed-income financial instrument designed explicitly to raise capital for projects that protect, restore, and sustainably manage marine and ocean ecosystems. Functioning as a subset of green bonds, these debt securities require issuers – such as governments, multilateral development banks, or corporations – to strictly direct the capital towards “blue” initiatives like sustainable fisheries, marine conservation, ocean-based renewable energy, and coastal pollution control. By connecting capital markets to marine health, blue bonds offer investors reliable financial returns while accelerating the transition to a sustainable global blue economy. – Gemini
This file photo taken in March this year shows the headquarters of the Macau Monetary Authority (AMCM) on Guia Hill in the peninsula. – Photo: Tony Wong
