Hong Kong is looking to raise between 500 million and one billion U.S. dollars in five-year green bonds as the Chinese special administrative region (SAR) looks to establish itself as a center for green finance.

Hong Kong is marketing a five-year U.S. dollar-denominated green bond on Tuesday. It is targeting a size of between 500 million U.S. dollars and one billion U.S. dollars, according to a message sent to investors.

The proceeds from green bonds get earmarked for investment in environmentally friendly projects.

The indicative guidance on the coupon was U.S. five-year Treasuries plus 50 basis points (bps), according to a term sheet seen by Reuters.