HKSAR Government's fourth Digital Green Bonds offering
The following is issued on behalf of the Hong Kong Monetary Authority:
The Government of the Hong Kong Special Administrative Region of the People's Republic of China (the HKSAR Government) today (September 29) announced the successful pricing of around HK$20 billion worth of digital green bonds (Digital Green Bonds) denominated in HK dollars (HKD), Renminbi (RMB), US dollars (USD) and euro (EUR) under the Government Sustainable Bond Programme.
Following a virtual roadshow, the Digital Green Bonds were priced on September 28 as follows:
- HKD 5.5 billion 2-year tranche at 3.80 per cent
- RMB 7.5 billion 5-year tranche at 1.65 per cent
- USD 200 million 3-year tranche at 5.023per cent
- EUR 450 million 4-year tranche at 3.734per cent
This issuance has once again set a new record for the largest digital bond issuance in the world, with subscription ratios across four currencies reaching 1.3 to 11.3 times, further promoting market adoption and broadening investor base for digital bonds.
Building on three successful issuances since 2023, the latest issuance reinforces HKSAR Government's commitment in promoting innovation in the bond market. Alongside traditional settlement rail and the tokenised central bank money option introduced in the previous issuance, tokenised deposits, empowered by EnsembleTX, have been incorporated into the primary issuance settlement process for the HKD tranche of this issuance. It represents the world's first digital bond that integrates tokenised deposits in HKD, advancing towards a more integrated digital ecosystem, and lays a foundation for exploring the programmable features of digital money.
This issuance also continues to advance adoption of global standards. By adopting the International Capital Market Association's latest Bond Data Taxonomy (BDT) Version 2.0 (Note 1), this issuance promotes greater data consistency, interoperability and end-to-end automation across the bond lifecycle.
The Financial Secretary, Mr Paul Chan, said, "The HKSAR Government has successfully issued digital green bonds for the fourth time, totalling HK$20 billion, which is the largest issuance of its kind globally. The offering was oversubscribed, demonstrating strong market appetite for tokenised products issued in Hong Kong. Denominated in multiple currencies, these bonds cater to the asset diversification needs of both local and overseas investors, and have incorporated a range of innovative technologies to further advance innovation in the bond market. The Government will continue to issue tokenised bonds on a regular basis, expand the use cases for the underlying technologies, and harness fintech to empower the bond market's continued development."
The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, "This fourth issuance of tokenised green bond demonstrates the HKSAR Government's ongoing commitment to supporting innovative forms of bond issuance and driving green transformation. The Policy Statement 2.0 on the Development of Digital Assets in Hong Kong released last year highlighted the focuses on the expansion of the suite of tokenised products and the advancement of use cases and cross-sectoral collaboration. The Chief Executive's 2026 Policy Address further stated that the Government will work to broaden use cases and popularise digital bonds. This issuance will further enhance society's understanding of the integration of sustainable development and fintech, while strengthening Hong Kong's position as a leading global green and sustainable finance hub."
The Chief Executive of the Hong Kong Monetary Authority (HKMA), Mr Eddie Yue, said, "Since 2023, we have been breaking new ground with digital bond issuances of the HKSAR Government. This fourth issuance reinforces our commitment to stay ahead in the digital finance space, continues to unlock new synergies across digital infrastructures, and deepens our digital asset ecosystem. We are encouraged by the strong investor demand and the expanding market participation, and look forward to sustaining this momentum to further catalyse market innovation and promote adoption."
Key features of the Digital Green Bonds
The clearing and settlement system of the Digital Green Bonds is the Central Moneymarkets Unit (CMU), with HSBC Orion as the digital assets platform. HSBC, Bank of China (Hong Kong), Bank of Communications, BNP PARIBAS, Crédit Agricole CIB, ICBC (Asia), J.P. Morgan, Standard Chartered Bank, Barclays, Citigroup, Deutsche Bank, Société Générale, UBS, Allen Overy Shearman Sterling, Ashurst Perkins Coie Hong Kong, and Linklaters were involved in the preparation for the issuance.
| Issue size | Around HK$20 billion equivalent |
| Currency | HKD, RMB, USD, EUR |
| Issue ratings | AA-/Aa3/AA+ (Fitch / Moody's / S&P), on par with the issuer's long-term rating |
| Governing law | Hong Kong law |
| Settlement cycle | T+1 |
| Use of proceeds | To finance and/or refinance projects that fall under one or more of the "Eligible Categories" set out in the Government's Green Bond Framework Vigeo Eiris has provided a Second Party Opinion on the Government's Green Bond Framework. The Digital Green Bonds have also received the Green and Sustainable Finance Certification Scheme Pre-issuance Stage Certificate from the Hong Kong Quality Assurance Agency |
| Listing | Hong Kong Stock Exchange |
| Joint Global Coordinators, Joint Lead Managers, Joint Bookrunners | HSBC, Bank of China (Hong Kong), Bank of Communications, BNP PARIBAS, Crédit Agricole CIB, ICBC (Asia), J.P. Morgan, Standard Chartered Bank |
| Joint Lead Managers, Joint Bookrunners | Barclays, Citigroup, Deutsche Bank, Société Générale, UBS |
| Joint Green and Sustainable Bond Structuring Banks | Crédit Agricole CIB, Bank of China (Hong Kong), BNP PARIBAS, Standard Chartered Bank |
| Clearing and Settlement System | CMU operated by the HKMA (Note 2), with linkage to Euroclear and Clearstream |
| Platform | HSBC Orion |
| Platform Provider | HSBC |
| Platform Direct Participants | Bank of China (Hong Kong), Bank of Communications, BNP PARIBAS, Crédit Agricole CIB, HSBC, ICBC (Asia), Standard Chartered Bank |
| Trustee | HSBC |
| Principal Paying Agent | HSBC |
| Legal Advisers | Allen Overy Shearman Sterling (to issuer), Ashurst Perkins Coie Hong Kong (to Platform Provider), Linklaters (to banks and agents) |
Vigeo Eiris has provided a Second Party Opinion on the Government's Green Bond Framework. The Digital Green Bonds have also received the Green and Sustainable Finance Certification Scheme Pre-issuance Stage Certificate from the Hong Kong Quality Assurance Agency
DISCLAIMER:NOT FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA OR JAPAN OR IN ANY OTHER JURISDICTION IN WHICH SUCH DISTRIBUTION OR DISSEMINATION WOULD BE PROHIBITED BY APPLICABLE LAW.
THIS ANNOUNCEMENT IS NOT MADE BEING MADE AVAILABLE IN, AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA OR JAPAN OR IN ANY OTHER JURISDICTION IN WHICH SUCH DISTRIBUTION OR DISSEMINATION WOULD BE PROHIBITED BY APPLICABLE LAW. THIS ANNOUNCEMENT IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INTENDED, AND SHOULD NOT BE CONSTRUED, AS AN OFFER OF, OR A SOLICITATION OF AN OFFER TO BUY, SECURITIES IN THE UNITED STATES OR ANY OTHER JURISDICTION. THE SECURITIES DESCRIBED HEREIN HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE LAWS OF ANY STATE OF THE UNITED STATES, AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES EXCEPT PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE WITH ALL APPLICABLE STATE LAWS. THERE WILL BE NO PUBLIC OFFERING OF SUCH SECURITIES IN THE UNITED STATES.
Note 1:The BDT is a standardised and machine-readable language of key economic terms of a bond (such as amounts, currency, maturity, interest), key dates (such as pricing, settlement) as well as other relevant information (such as governing law, relevant parties, ratings, selling restrictions) typically included within a term sheet. Version 2.0 of the BDT expands coverage to supportmore complex issuance structures, introduces greater flexibility in data fields to accommodate a wider range of transaction types, and extends its application across the full bond lifecycle.
Note 2: The Digital Green Bonds are cleared and settled through the CMU, and the settlement of transactions made through the CMU benefits from statutory settlement finality under Hong Kong law.
Source: AI-found images
