Hong Kong SAR issues the world’s first government-issued tokenised green bond
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.
“Crédit Agricole CIB is delighted to have the opportunity to partner with the Hong Kong Monetary Authority on the Hong Kong SAR Government’s inaugural tokenised green bond offering. This issuance marks a significant breakthrough in the capital markets innovation for Hong Kong and lays a solid foundation for asset digitisation for the other market participants in the region. We are honoured to support the ongoing initiatives to promote the city’s green finance and fintech developments.”
Edouard O’Neill, Chief Executive Officer, Hong Kong Branch and Head of Structured Finance Asia
“This offering marks the first ever tokenised green bond by a government issuer globally. We are delighted to support the Hong Kong SAR Government’s initiative in developing innovative solutions and revolutionising the financial services in the region. In doing so, we are able to enhance our product coverage and strengthen our customer value proposition in green and sustainable finance.”
Alan Roch, Head of Credit for Asia-Pacific and the Middle East
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.
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