The Government of the Hong Kong announced that it has issues approximately HK$6 billion (USD$765 million) of digital green bonds, with the issuance including bonds denominated in HK dollars, Renminbi, US dollars and euros, making it the first multi-currency digital bond offering in the world.
A digital green bond, or a tokenized green bond, is a green bond that is represented on a blockchain network. Investors trade the bonds on the blockchain-based exchange and principal and interest are paid on the blockchain. Digital bonds offer benefits including increased transparency and traceability, as well as faster transactions and settlements.
The offering marks Hong Kong’s second digital green bond, following its inaugural HK$800 million tokenized green bond issuance in early 2023.
Christopher Hui, the Secretary for Financial Services and the Treasury, said:
“The second issuance of digital green bonds demonstrates the Government’s continuous support to innovative forms of bond issuances and green transformation. We are confident that this issuance will further entrench the social awareness of sustainable development in combination with fintech and consolidate Hong Kong’s status as a leading green and sustainable finance hub.”
The new offering was made under Hong Kong’s Government Green Bond Programme, with eligible use of proceeds, as outlined under Hong Kong’s Green Bond Framework, including projects involving renewable energy, energy conservation, pollution mitigation, waste and wastewater management, nature conservation and biodiversity, green buildings, clean transportation, and climate change adaptation.
Paul Chan, Hong Kong’s Financial Secretary, said:
“The Government has once again issued digital green bonds this year, incorporating various technological innovations. This demonstrates Hong Kong’s strengths and leadership position in combining the bond market, green and sustainable finance, as well as fintech. We will continue to promote innovation and application of fintech, explore the use of new technologies to enhance the efficiency, transparency, and security of financial transactions, and foster vibrant development in various sectors of the financial market.”