Hong Kong raised $1 billion from its first green bond sale on Wednesday, The Star reported. This comes in an effort to position itself as a hub for green finance.

Hong Kong sold a five-year US denominated green bond, with a coupon of 2.4 percent. According to Hong Kong Monetary Authority, it has attracted over $4 billion in orders from global investors

The green bonds is the first to be issued under Hong Kong’s $12.74 billion green bond programme. The programme will be a long-term project. According to Vincent Lee, executive director (external) at the HKMA, the programme will issue ‘different batches of green bonds’ as and when the projects take place. It will ‘attract’ investors and green issuers from mainland and other international regions toward these green bonds products.

The proceeds from the bonds will be used for funding projects around various eco-friendly measures. The measures include clean transportation, better air quality, and green buildings. These bonds are said to be one of the largest bond schemes worldwide.

Financial Secretary of Hong Kong Paul Chan said, “The favourable response from global investors indicates not only their recognition of Hong Kong’s credit strength, but also their support of Hong Kong’s determination and efforts in promoting sustainable development and combating climate change.”

Refinitiv data said that the global corporate green bonds issuance is at $41.3 billion this year. The sovereigns have raised $17.8 billion.

According to South China Morning Post, Lee said that there is enough confidence that the bond issuances will ‘increase’ in Hong Kong. “We are positive about the ranking of Hong Kong as a bond issuance hub in Asia,” she added.