Hong Kong has issued around HK$10 billion ($1.29 billion) worth of digital green bonds denominated in HK dollars, renminbi, US dollars and euros under the special administrative region government’s sustainable bond program.
Following a five-day virtual roadshow that ended on Friday, the bonds were priced at 2.5 percent for the HK$2.5 billion two-year tranche, 1.9 percent for the 2.5 billion yuan ($350 million) five-year tranche, 3.633 percent for the $300 million three-year tranche, and 2.512 percent for the 300 million euros ($347.34 million) four-year tranche, according to an announcement by the Hong Kong Monetary Authority on Tuesday.
This issuance achieved a record size of HK$10 billion, with the total subscription amount across four currency tranches reaching over HK$130 billion, marking the world’s largest digital bond issuance to date. With the tenor extending to up to five years, the latest offering responds to investor demand for longer-term digital bonds.
For both the Hong Kong dollar and renminbi tranches, the option to settle via tokenized central bank money was introduced alongside traditional settlement rails in the primary issuance process, which help further reduce settlement time, costs and counterparty credit risk.
This also marks the first digital bond offering in the world that integrates tokenized central bank money in the form of e-CNY and e-HKD in the settlement process.
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“The HKSAR government’s third issuance of digital green bonds (after the two in 2023 and 2024) attracted overwhelming subscription… reflecting the market support for tokenized products,” said Financial Secretary Paul Chan Mo-po.
He added the SAR government will regularize the issuance of tokenized bonds, support the establishment of comprehensive benchmarks, and promote innovative products and services for a wider application of digital finance.
This is the first issuance after the release of the Policy Statement 2.0 on the Development of Digital Assets in Hong Kong, in which the SAR government announced plans to regularize the issuance of tokenized government bonds, said Secretary for Financial Services and the Treasury Christopher Hui Ching-yu.
Hui highlighted Hong Kong’s unique position of connecting traditional finance to the digital asset era, noting that “Riding on our established strengths in financial services, this issuance will further consolidate Hong Kong’s status as a leading green and sustainable finance hub.”
Eddie Yue Wai-man, chief executive of the HKMA, said “The integration of tokenized central bank money in this issuance lays the foundation for future integration with other forms of digital money, fostering interoperability and unlocking new synergies across different digital infrastructures.”
