A new $350 million (£278m) Energy Transition Bond has been issued to support Hong Kong’s transition towards a lower carbon future.
Castle Peak Power Company Limited (CAPCO) said it has successfully priced the issuance through its subsidiary Castle Peak Power Finance, under the Climate Action Finance Framework (CAFF) of its parent company CLP Holdings (CLP).
The funds raised will be used to finance the construction of an offshore Liquefied Natural Gas (LNG) receiving terminal in Hong Kong and its associated pipeline and gas receiving station.
CLP said this will enable the company to buy gas directly from more diversified sources for its gas-fired power generation facilities, including two new combined cycle gas turbine (CCGT) units being developed at Black Point Power Station.
The project supports CLP’s commitment to reduce its carbon intensity while ensuring a reliable and affordable electricity supply to consumers.
TK Chiang, Managing Director of CLP Power Hong Kong Limited added: “The LNG terminal and new CCGT units are key infrastructure for both Hong Kong and CLP. They will be instrumental in supporting the Hong Kong Government’s fuel mix target of increasing gas-fired power generation to around 50% this year.
“The successful issuance of the bond signals growing investor recognition of the role played by natural gas as Hong Kong transitions to a lower carbon future.”