IFC Launches Public Green Bond in Hong Kong’s ‘Wonton Bond’ Market with HK$6 Billion Deal

World Bank Group member raises approximately US$766 million in debut public green issuance as investors signal growing confidence in Hong Kong’s sustainable finance market.

The International Finance Corporation (IFC), the private-sector arm of the World Bank Group, has successfully launched a landmark HK$6 billion green bond transaction, marking the first-ever public green bond issued in Hong Kong's rapidly expanding "Wonton Bond" market.

The three-year transaction — equivalent to approximately US$766 million — represents a major milestone for both Hong Kong's sustainable finance ambitions and the global development finance sector, highlighting growing investor appetite for environmentally focused investments linked to emerging market development.

The Wonton Bond market refers to public Hong Kong dollar-denominated bonds issued by foreign entities, including supranationals, sovereign governments, agencies, and multinational corporations.

Market analysts say IFC's inaugural benchmark-sized green issuance could significantly accelerate growth in Hong Kong's sustainable debt market while positioning the city as an increasingly important regional hub for green and transition finance.

The bond carries a coupon of 2.917% and was jointly managed by ANZ, HSBC, and Standard Chartered Bank.

The issuance will also be listed on the London Stock Exchange, further strengthening its international visibility among global institutional investors.

According to IFC, the transaction attracted exceptionally strong investor demand, with local Hong Kong investors accounting for 87% of the total order book.

Bank treasuries represented the overwhelming majority of buyers, taking approximately 90% of the allocation, while the remaining portion was placed with asset managers.

Financial institutions involved in the deal described the issuance as a defining moment for the development of Hong Kong's green bond ecosystem.

"IFC's inaugural benchmark-sized Green Wonton issuance represents a landmark transaction, underscoring IFC's long-standing commitment to scale global sustainable bond markets and unlock private investment to support projects in emerging markets," said Jorge Familiar, Vice President and Treasurer of the World Bank Group.

"The strong endorsement from our investor base further reinforces our vision to broaden our public market presence across an increasingly diversified currency landscape," he added.

The deal arrives at a time when global demand for sustainable investment products continues to grow rapidly, driven by climate-related financial risks, environmental policy shifts, and increasing investor focus on ESG (Environmental, Social, and Governance) standards.

Green bonds — debt instruments specifically used to finance environmentally sustainable projects — have become one of the fastest-growing segments of international capital markets over the past decade.

IFC said proceeds from the bond will be used to finance a broad portfolio of green development projects across emerging markets, including initiatives focused on climate change mitigation and adaptation, biodiversity conservation, ocean protection, water sustainability, and other environmentally beneficial infrastructure investments.

Development finance experts say mobilising large-scale private capital remains essential to addressing the massive global financing gap required to meet climate and sustainable development goals.

ANZ Head of Sustainable Finance for International Stella Saris Chow said the transaction demonstrates how sustainable finance can channel investment toward climate-positive outcomes while strengthening regional financial markets.

"ANZ is pleased to support IFC on its successful HKD green bond issuance," she said.

"This issuance reinforces the role sustainable finance can play in mobilizing capital at scale for climate-positive outcomes for emerging and developing markets."

She also highlighted the growing maturity of Hong Kong's local debt market as a platform for sustainable financing activity.

"This transaction underscores the depth and maturity of the Hong Kong dollar market as a platform for high-quality green and sustainable issuance, and its importance in supporting the region's sustainability ambitions," she added.

ANZ Head of Capital Markets for Asia Kang Jae Kim described the deal as a potential benchmark transaction for future green bond issuances in the Wonton market.

"We congratulate IFC on the success of this latest transaction that is expected to set a benchmark for green bond issuances in the Wonton market," Kim said.

"The transaction underscores IFC's leadership in developing sustainable capital markets, with quality, scale, and diversity of demand highlighting investor confidence."

Financial institutions involved in the issuance also pointed to the unusually strong investor participation and record-setting order book.

"Standard Chartered is honored to have supported IFC's second Wonton bond transaction as joint lead manager," said Oliver Greer, Global Head of Medium-term Notes at Standard Chartered.

"This landmark deal achieved the largest-ever order book, highlighting both the continuing growth of the HKD bond market and IFC's strong reputation as a leading issuer."

HSBC similarly described the deal as an important milestone for Hong Kong's debt capital markets.

"HSBC is delighted to support IFC on such a successful return to the Wonton market," said Asif Sherani, Head of Public Sector Debt Capital Markets and EMEA Syndicate at HSBC.

"A fantastic outcome that continues the impressive growth of the Wonton market," he said.

The green bond was issued under IFC's updated Green Bond Framework, revised in December 2022.

The framework received a "medium green" rating from independent second-opinion provider CICERO Shades of Green, which also confirmed full alignment with the International Capital Market Association's Green Bond Principles.

The successful issuance further strengthens IFC's role as one of the world's leading issuers of sustainable development bonds and highlights the increasing convergence between international development finance and private capital markets in funding climate and sustainability initiatives.

Analysts say the transaction may encourage additional foreign issuers to enter Hong Kong's Wonton Bond market, potentially expanding the city's role in global sustainable finance amid intensifying competition among international financial centres.