Bank of China has recently acted as lead global coordinator, joint lead underwriter, joint bookrunner, green and sustainable finance advisor and settlement and clearing bank to help the People's Government of Hainan Province successfully issue RMB 5 billion of local government bonds in Hong Kong. With this transaction, BOC has served as the lead underwriter on Hainan's offshore bond offerings for five consecutive years.

The issuance marks the People's Government of Hainan Province's first Hong Kong bond offering since the Hainan Free Trade Port officially commenced island-wide special customs operations. The bond is structured in multiple tenors, including a 3-year sustainability bond, a 5-year blue bond and a 10-year education-themed bond. The 3-year tranche totaled RMB 2.5 billion at a 1.41% coupon; the 5-year tranche totaled RMB 1.5 billion at a 1.51% coupon; and the 10-year tranche — China's first education-themed local government bond — totaled RMB 1 billion at a 1.81% coupon.

Proceeds will primarily support marine ecological protection, medical and healthcare infrastructure, and key projects in the Lingshui Li'an International Education Innovation Pilot Zone, and will continue to be settled through Hainan Free Trade Port multi-functional free trade accounts (EF accounts).

Conducted fully in line with international market rules, the offering attracted strong investor demand, with peak orders reaching RMB 43.7 billion in bookbuilding and a subscription ratio of nearly 9 times. The investor base was global and diversified, spanning policy banks, commercial banks, investment banks, securities firms, insurance companies and asset managers across Europe, Asia and other regions — a clear sign of investor confidence in Hainan Province's credit profile and development prospects.

The successful launch of this bond marks the completion by BOC of all 2026 offshore RMB local government bond issuances for the governments of Guangdong, Shenzhen, and Hainan.

Since 2021, BOC has acted as lead or joint global coordinator on every offshore local government bond issuance, helping to place more than RMB 88 billion of offshore local government bonds, with cumulative underwriting volume continuously leading the market. BOC will continue to leverage its professional strengths in cross-border finance to support the high-quality expansion of the offshore RMB market through high-quality financial services.