Hong Kong SAR issues the world’s first government-issued tokenised green bond

Green finance

Crédit Agricole CIB acted as Joint Global Coordinator and Joint Green Structuring Bank for the offering.

The Government of the Hong Kong Special Administrative Region1 (Hong Kong SAR Government) priced, on 16 February 2023, a one-year HK$800 million tokenised green bond offering. This transaction represents the first tokenised green bond ever issued by a government globally, the inaugural issuance of a tokenised green bond in Asia-Pacific, and the first tokenised issuance governed by Hong Kong law.

Crédit Agricole CIB acted as one of the Joint Global Coordinators and Joint Green Structuring Banks on the deal.

Innovatively combining bonds, fintech and sustainable finance, this landmark transaction helps strengthen Hong Kong’s technological infrastructure and facilitates green finance development for the international financial centre.

These tokenised notes under the Hong Kong Government Green Bond Programme will be recorded and distributed on an innovative digital ledger platform rather than traditional book entries. All securities and cash token records on the private blockchain network will be final and legally definitive.

Proceeds of the tokenised notes will be credited to the Capital Works Reserve Fund to finance eligible projects under the Hong Kong Monetary Authority’s (HKMA) Green Bond Framework, which will provide environmental benefits and support the sustainable development of Hong Kong. Since 2019, Crédit Agricole CIB has been playing various key roles in assisting the HKMA with the Hong Kong SAR Government Green Bond Programme.

This transaction reaffirms the Bank’s ongoing focus on fostering the region’s sustainable finance advancement through innovation, while reinforcing the Bank’s relationship with the Hong Kong financial authorities as we help the government advance its technological and green developments.

The successful adoption of this unique transaction structure will provide market participants with a blueprint to follow in the future.

1The Hong Kong Monetary Authority is the central banking institution for the Government of the Hong Kong Special Administrative Region of the People’s Republic of China.

Green finance

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