• Hong Kong’s government issued its first tokenized green bond of 800 million Hong Kong dollars (US$101 million).
• This bond was offered by the government under its Green Bond Program and is the first green bond to be issued by a government globally.
• The 365-day bond at 4.05% yield was offered in collaboration with Bank of China (Hong Kong), Crédit Agricole CIB, HSBC and Goldman Sachs as the platform provider.
Hong Kong Successfully Offers Inaugural $100M Tokenized Green Bond
Hong Kong’s central bank had been exploring tokenization of green bonds since at least 2021. On Thursday, the government successfully issued its first tokenized green bond of 800 million Hong Kong dollars (US$101 million).
About The Bond
The bond was offered by the government of the Hong Kong Special Administrative Region of the People’s Republic of China (HKSAR) under its Green Bond Program, and is the first green bond to be issued by a government globally. The 365-day bond at 4.05% yield was offered in collaboration with Bank of China (Hong Kong), Crédit Agricole CIB and HSBC – with Goldman Sachs as the platform provider.
The bond is not for distribution in the U.S., Canada, Japan or any other prohibited jurisdiction.
Processes Of The Bond Lifecycle
“Processes of the bond lifecycle, including coupon payment, settlement of secondary trading and maturity redemption, will also be digitalized and performed on the private blockchain network,” said Christopher Hui, secretary for Financial Services and Treasury.
Exploring Tokenization Of Green Bonds Since 2021
The Hong Kong Monetary Authority had been looking into tokenized green bond issuance since at least 2021. Green bonds are issued to finance eco-friendly projects while tokenization allows these bonds to be sold digitally and with ease.
< h2 >Clear Policy Stance To Promote Sustainable Development Of Virtual Assets Sector h 2 >
< p >“Green bond tokenization is one of the pilot projects announced in the Government’s Policy Statement on Development of Virtual Assets in Hong Kong,” said Christopher Hui. “Through a clear policy stance and road map, the Government will work towards providing a facilitating environment to promote sustainable and responsible development of virtual assets sector”. P >