Shenzhen's municipal government successfully priced its 2026 offshore renminbi local government bonds in Hong Kong's Special Administrative Region on September 8, continuing an annual tradition that began in 2021.

With this issuance, Shenzhen has now tapped the Hong Kong market for offshore renminbi local government bonds for six consecutive years, bolstering financial market connectivity across the Guangdong-Hong Kong-Macao Greater Bay Area.

The bond sale raised a total of 4 billion yuan, split between two tenors: a 5-year tranche and a 10-year tranche. The 10-year general obligation bond, sized at 1.5 billion yuan, was priced at a coupon rate of 1.81%, while the 5-year green bond, themed around low-carbon urban development and sized at 2.5 billion yuan, was priced at 1.51%.

Proceeds from the offering are primarily earmarked for infrastructure projects such as metro construction. The green bond has been certified by the Hong Kong Quality Assurance Agency, with the underlying projects aligned with the requirements of the Hong Kong Sustainable Finance Classification under Stage 2A.

The issuance strictly followed international market conventions and drew considerable attention from global institutional investors. Demand was robust during the bookbuilding phase, with 71 accounts across multiple countries and regions submitting orders. Participating investors included policy banks, commercial banks, insurance firms, fund managers, private banks, and other financial institutions, with book orders oversubscribed by more than 9 times.

Marking the opening year of China's 15th Five-Year Plan period, Shenzhen's sixth consecutive offshore bond issuance in Hong Kong underscores deepening financial cooperation between the two cities and injects substantial momentum into achieving the plan's economic and social development targets.

This year also marks Shenzhen's sixth consecutive issuance of green bonds. As one of the nation's first batch of carbon peak pilot cities, Shenzhen's actions actively promote energy conservation, carbon reduction, and sustainable development, carrying significant implications for advancing the joint construction of a green and beautiful Greater Bay Area and positioning the region as a global hub for green development.