Guangdong to issue RMB2.5 billion in municipal bonds in Macau late this month

The Monetary Authority of Macao (AMCM) confirmed that the Guangdong government will issue offshore RMB-denominated municipal government bonds in Macau late this month.

According to AMCM, these bonds will have a total value of RMB2.5 billion. This is the fifth consecutive year that this type of bond has been issued in Macau.

The issuance occurs in addition to the continuing issuance of Guangdong-Macau In-depth Cooperation Zone in Hengqin-themed and green bonds.

For the first time, the Guangdong government will issue bonds themed to support the 15th National Games and “blue bonds.” All bonds will be offered exclusively to professional investors.

AMCM said that these initiatives demonstrate strong support from both the central government and the Guangdong government for expediting the development of the bond market and other new financial businesses while promoting appropriate economic diversification.

The issuance of National Games-themed bonds also highlights support for the first large-scale sporting event jointly hosted by the Guangdong Province, Hong Kong, and Macau.

AMCM remarked, “This issuance also stands as a notable demonstration of the accelerating integration within the Guangdong-Hong Kong-Macau Greater Bay Area and support for Macau’s integration into the nation’s master plan.”

Moreover, the authority noted that the continued issuance of green bonds, along with the first issuance of blue bonds, will broaden the product mix and encourage more issuers to bring green, blue, and other sustainable instruments to Macau’s bond market.

This will foster green and sustainable development across both sides under the guiding objectives of carbon peaking and carbon neutrality.