- The Hong Kong government announced that it sold the world’s first-ever tokenized green bond.
- The price for the tokenized green bond was fixed on February 15, 2023, with a yield of 4.05%.
- Four different banks underwrote the offering, two of which acted as investor custodians.
The Hong Kong government announced that it sold the world’s first-ever tokenized green bond to be issued by a government. The tokenized green bond sold is valued at HK$800 million, equivalent to USD$101.92 million.
In a press release describing the tokenization processes, the Government of the Hong Kong Special Administrative Region (HKSAR Government) said it embarked on an awareness program in the form of an online roadshow days before the sale.
The price for the tokenized green bond was fixed on February 15, 2023, with a yield of 4.05%, and four different banks underwrote the offering, two of which acted as investor custodians. HKSAR’s Central Moneymarkets Unit (CMU) executed the bonds settlement, while the Goldman Sachs tokenization platform was deployed for the exercise.
According to the press release, this is the first batch of tokenized bonds governed by Hong Kong law. It demonstrates Hong Kong’s ability to provide a flexible and convenient legal and regulatory environment for innovative bond issuance forms.
HKSAR promised that the Hong Kong Monetary Authority (HKMA), as a government representative under the green bond program, would release a whitepaper to summarize the experience of this issuance. The whitepaper will detail the government’s next steps and provide a reference for issuing tokenized bonds in Hong Kong.
Reacting to this development, HKSAR Financial Secretary Paul Chan said that Hong Kong has been an active promoter of the application of innovative technologies in the financial sector. According to him, the region has been vibrant in the exploration of new concepts and technologies for improving the efficiency, transparency, and security of financial transactions.
Chan noted that the successful issuance of tokenized green bonds by Hong Kong marks the integration of the bond market, green and sustainable finance, and other advantages of financial technology. He affirmed HKSAR’s resolve to promote the innovative development of the financial market.