Hengqin companies issuing bonds in Macau are eligible for a grant of up to RMB 5.5 million
* By Thérèse Tu
The Guangdong-Macao Hengqin Deep Cooperation Zone (GMICZ) Executive Committee announced today (Thursday) that companies based in the cooperation zone may be eligible for a grant of up to RMB 5.5 million. , when issuing corporate bonds in Macau.
Hengqin companies that have successfully issued qualifying bonds in Macau with an issue amount of at least MOP 500 million may receive a subsidy of 0.8 percent of the funds actually raised.
The grant aims to encourage Hengqin companies to “effectively use” Macao’s bond market for direct financing and to reduce the cost of issuing corporate bonds in Macau.
Bonds will be registered and settled by the central securities depository system (CSD).
Launched earlier this month, the CSD is a key financial mechanism to strengthen the integration of Macao’s financial market with foreign financial markets.
Meanwhile, Hengqin companies that issue green bonds in Macau will receive an additional 500,000 RMB from external review fee funds.
Law firms, accounting firms, credit rating agencies and third-party review agencies for Green Bonds in Hengqin that provide services to GMICZ companies to issue bonds in Macau will also be eligible for a grant. of 100,000 RMB each time.
The enactment of these support measures aims to help attract more Hengqin companies to preferentially choose to issue bonds in Macau and thus increase the vitality of the Macao bond market.
By rewarding intermediary agencies, the authorities hope to contribute to the development of the “service ecology” of the SAR bond market and lay the foundations for the future development of the cooperation area and the Macao bond market.
The measures will be implemented on March 1, 2022, with a validity of one year.