Hong Kong SAR Government issues the world’s first multi-currency digital green bond
Crédit Agricole CIB is one of the platform direct participants, a joint green structuring bank, and a joint global coordinator.
The Government of the Hong Kong Special Administrative Region of the People’s Republic of China (HKSAR Government) issued around HK$6 billion worth of digital green bond offering denominated in four currencies – Hong Kong dollar, U.S. dollar, Renminbi and Euro. This landmark issuance represents the first multi-currency digital bond offering in the world, and marks the second digital bond offering following the HKSAR Government’s inaugural tokenised green bond issued Will open in a new tab in February 2023.
Crédit Agricole CIB is one of the platform direct participants, and acted as joint green structuring bank, and joint global coordinator, joint lead manager and joint bookrunner on the transaction. Platform direct participants including Crédit Agricole CIB have direct access to the digital asset platform, and can hold the legal titles of the digital green bonds.
Technology is reshaping the bond market
In recent years, the market has seen an increasing number of digital bond issuances. In this world’s first multi-currency digital bond offering, the HKSAR Government has further achieved several new breakthroughs. These include:
- Cross-platform interactions with Central Moneymarkets Unit (CMU), Euroclear and Clearstream, promoting interoperability across different platforms and traditional central securities depositories.
- Streamlining the issuance process using digitally native format, removing the need to first issue the bond in traditional central securities depository and then convert into digital format.
- To enhance transparency and information accessibility, users can view relevant green documentations, including green bond framework, and third party review reports on the digital asset platform.
When digitalisation meets sustainability
On top of digitalisation features, the digital green bonds were offered under the Government Green Bond Programme. Proceeds will be allocated to finance and/or refinance green projects that provide environmental benefits and support the sustainable development of Hong Kong.
This unique digitalised, sustainable, and multi-currency issuance offered diversity to trade and resulted in significantly broader investor participation.
“Crédit Agricole CIB is honoured to have once again supported the HKMA and the HKSAR Government on another ground-breaking digital green bond issuance. This is a remarkable achievement and key milestone for the capital market innovation and asset digitalisation, providing a platform for diverse global investors to participate in this transaction. Innovatively combining bond, fintech and sustainable finance, this landmark transaction helps further strengthen Hong Kong’s digital asset infrastructure and solidify Hong Kong’s leading position in green finance and fintech developments.”
Chief Executive Officer, Hong Kong Branch
“We would like to thank the HKMA and the Hong Kong SAR government for trusting us again on their second digital green bond issuance. The major breakthroughs made on this transaction including interactions with CMU and its external linkages resulted in significantly broader investor participation. Amongst the accolades achieved, this transaction is also the largest digital bond ever issued by any government globally and the first ever CNH digital bond issued globally.”
Head of Credit for Asia-Pacific and the Middle East
At Crédit Agricole CIB, our purpose is to offer best-in-class solutions for clients. Our award-winning team has been an active member in the Hong Kong bond and sustainable market:
- Crédit Agricole CIB co-authors the first sustainable finance thought leadership paper by The Alliance For Green Commercial Banks
- We supported the Hong Kong Mortgage Corporation in issuing Asia's largest social bond and the Hong Kong SAR in issuing the world’s first government-issued tokenised green bond
- Asiamoney names Crédit Agricole CIB as Hong Kong’s Best Bank for ESG in 2023 Will open in a new tab
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