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At Extreme Investor Network, we aim to provide you with the latest and most valuable information in the world of cryptocurrency and blockchain. Today, we are excited to share with you a significant announcement from the Hong Kong Monetary Authority (HKMA) regarding the interest rate for the fifth interest payment of its retail green bonds due in 2025.
HKMA Announces Interest Rate for Green Bonds
The Hong Kong Monetary Authority (HKMA), on behalf of the Hong Kong Special Administrative Region Government, has revealed the interest rate for the fifth interest payment of its retail green bonds due in 2025. The interest rate has been set at 2.50% per annum, determined as the higher of the prevailing floating and fixed rates.
Details of the Interest Rate Determination
The retail green bonds, identified by Issue Number 03GR2505R and Stock Code 4252, are part of the Government Sustainable Bond Programme. The interest payment is scheduled for November 18, 2024. The HKMA’s announcement on November 4, 2024, outlined the floating rate at 1.83% and the fixed rate at 2.50%, leading to the selection of the fixed rate as the applicable interest rate.
Background on Hong Kong’s Green Bond Initiative
The retail green bonds are a crucial component of Hong Kong’s initiative to promote sustainable finance. The Government Sustainable Bond Programme, previously known as the Government Green Bond Programme, aims to support environmentally beneficial projects and initiatives. Investors can contribute to sustainable development while earning a fixed income through this series of bonds.
Market Implications
The interest rate of 2.50% reflects the current economic conditions and inflation rates in Hong Kong. With the Consumer Price Index showing an arithmetic average of 1.83% from April to September 2024, the HKMA’s decision to choose the higher fixed rate for bondholders aligns with these factors. For more detailed information, you can visit the official Hong Kong Monetary Authority website.
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