On September 12, 2025, Hainan Province successfully completed the book-building and issuance of its Hong Kong SAR 2025 offshore local government bonds, with a total size of CNY 5 billion (approx. USD 685 million). The issuance includes CNY 2.5 billion (approx. USD 343 million) of 3-year sustainable development bonds with a coupon rate of 1.73%, CNY 1.5 billion (approx. USD 205 million) of 5-year blue bonds with a coupon rate of 1.83%, and CNY 1 billion (approx. USD 137 million) of 10-year aerospace-themed bonds with a coupon rate of 2.1%. The above bonds will all be listed on the Hong Kong Stock Exchange.

Following international market standards, the bond issuance attracted broad attention from investors, and drew participation from a diverse range of institutions in Europe and Asia, including commercial banks, investment banks, securities firms, funds, and asset management companies. Peak order size reached nearly CNY 23 billion (approx. USD 3.15 billion), reflecting the international capital market’s confidence in the Hainan Free Trade Port’s credit strength and growth prospects.

This is the fourth time Hainan has issued offshore local government bonds in Hong Kong. The proceeds will primarily be allocated to marine protection, public welfare, and key scientific research and infrastructure projects in the aerospace sector. All funds will continue to be settled through Hainan Free Trade Port’s multifunctional Electronic Fence Account (EF Account).

In recent years, Hainan has been accelerating the development of its aerospace industry, with multiple projects taking shape. Expected to promote the development of commercial space activities while providing high-quality investment opportunities for international investors, this year’s 10-year bond is—notably—the first aerospace-themed local government bond in China