Hong Kong Issues First-Ever $100M Tokenized Green Bond with Success

The Hong Kong government has successfully issued its first tokenized green bond worth 800 million Hong Kong dollars ($101 million).

The bond is part of the government’s Green Bond Program and is the first green bond to be issued by a government globally. The bond is designed to finance eco-friendly projects and will be sold digitally using blockchain technology.

The bond will be offered through a private blockchain network, and processes related to its lifecycle, including coupon payment, settlement of secondary trading, and maturity redemption, will be digitalized.

The 365-day bond will yield 4.05% and is being offered in collaboration with Bank of China (Hong Kong), Crédit Agricole CIB, and HSBC.

Goldman Sachs is serving as the platform provider for the bond. The announcement made it clear that the bond is not for distribution in the U.S., Canada, Japan, or any other prohibited jurisdiction.

The Hong Kong Monetary Authority has been looking into tokenized green bond issuance since 2021, and the government’s Policy Statement on Development of Virtual Assets in Hong Kong identified green bond tokenization as a pilot project.

The issuance of this bond marks a significant step forward in the development of the virtual assets sector in Hong Kong.

Christopher Hui, Secretary for Financial Services and the Treasury, expressed his enthusiasm for the project, stating that the government would work towards providing a facilitating environment to promote sustainable and responsible development of the virtual assets sector.

Hui added that the government welcomes market participants to conduct tokenized issuances in Hong Kong.