The bonds will be issued in two-year tenor, three-year tenor and five-year tenor. The three-year and five-year bonds are green bonds.

Chief Executive Carrie Lam Cheng Yuet-ngor said the SAR Government welcomes the issuance of RMB bonds in Hong Kong by the Shenzhen Municipal People's Government, which is the first time a Mainland municipal government issues bonds outside the Mainland.

“This enriches further the range of RMB financial products available in Hong Kong market, promotes the internationalization of RMB and strengthens Hong Kong's status as the global offshore RMB business hub, as supported by the National 14th Five-Year Plan.”

“The issuance showcases Hong Kong as the premier platform facilitating the Mainland to 'go global', and marks another milestone in the development of financial services in Hong Kong through increasing the breadth and depth of our RMB debt market and enhancing financial cooperation between the Mainland and Hong Kong,” said Lam.

She added that both Hong Kong and Shenzhen have established a close rapport for many years, which the SAR Government looks forward to working with the Shenzhen Municipal Government to promote a higher level of cooperation between Hong Kong and Shenzhen.

Meanwhile, Financial Secretary Paul Chan Mo-po said Hong Kong is a major platform for the allocation of assets by international investors and plays the unique role as the gateway for international capital to access the Mainland.

“In respect of interest paid or profit received arising from the debt instruments issued in Hong Kong by the Shenzhen Municipal People's Government, we plan to exempt the payment of profits tax,” said Chan.