The Hong Kong government announced that it has issued approximately HK$6 billion (US$765 million) worth of digital green bonds, with the issuance including bonds denominated in HK dollars, Renminbi, US dollars and euros, making it the first digital multi-currency offering of titles in the world.
A digital green bond, or tokenized green bond, is a green bond represented on a blockchain network. Investors trade securities on the blockchain-based exchange and principal and interest are paid on the blockchain. Digital securities offer benefits that include greater 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, Secretary of Treasury and Financial Services, said:
“The second issuance of digital green bonds demonstrates the Government’s continued support for innovative forms of bond issuance and green transformation. We are confident that this issuance will further consolidate the social awareness of sustainable development in combination with fintech and cement Hong Kong’s status as a leading green and sustainable financial hub.”
The new offering was made under the Hong Kong Government's Green Bond Programme, with eligible use of proceeds as outlined in the Hong Kong Green Bond Framework, including projects involving renewable energy, energy conservation, pollution mitigation, waste and wastewater management, nature and biodiversity conservation, green buildings, clean transport and adaptation to climate change.
Paul Chan, Hong Kong's financial secretary, said:
“The Government returned to issuing digital green bonds this year, incorporating several 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 the innovation and application of fintech, explore the use of new technologies to increase the efficiency, transparency and security of financial transactions, and promote vibrant development in various sectors of the financial market.”
