Hong Kong Advances Digital Finance with $10 Billion Green Bond Issuance
Timothy Morano Nov 11, 2025 05:56
Hong Kong's third digital green bond issuance, valued at HK$10 billion, introduces tokenised central bank money, marking a significant milestone in sustainable finance.
The Hong Kong Special Administrative Region (HKSAR) Government has announced the successful pricing of its third digital green bond issuance, valued at approximately HK$10 billion. This issuance, under the Government Sustainable Bond Programme, marks a significant advance in digital finance by integrating tokenised central bank money for the first time, according to the Hong Kong Monetary Authority.
Key Features of the Bond Issuance
The bonds are denominated in multiple currencies, including HKD, RMB, USD, and EUR. The HKD tranche was set at 2.5% over two years, the RMB tranche at 1.9% over five years, the USD tranche at 3.633% over three years, and the EUR tranche at 2.512% over four years. The issuance was executed following a virtual roadshow conducted from November 3 to 7, 2025, and was priced on November 10, 2025.
The introduction of tokenised central bank money in the settlement process, specifically e-CNY and e-HKD, is a pioneering move that aims to reduce settlement time, costs, and counterparty credit risk. This innovation positions the issuance as a world-first in integrating such digital money forms in bond settlements.
Market Impact and Innovations
This issuance not only achieved a record size for digital bonds but also attracted a substantial subscription amount exceeding HK$130 billion across the four currency tranches. The tenor extension to five years meets investor demand for longer-term digital bonds, further broadening the appeal of the digital bond market to institutional investors globally.
The issuance also advanced the adoption of global standards, with Digital Token Identifiers (DTIs) obtained for all tranches, linking them to International Securities Identification Numbers (ISINs) and Legal Identity Identifiers (LEIs). Additionally, the issuance expanded the use of the International Capital Market Association’s Bond Data Taxonomy (BDT) to improve interoperability and foster automation in capital markets.
Statements from Hong Kong Officials
Financial Secretary Paul Chan highlighted the overwhelming market support for tokenised products, emphasizing the innovative features introduced to enhance fintech empowerment in bond markets. Secretary for Financial Services and the Treasury, Christopher Hui, emphasized Hong Kong's strategic position in connecting traditional finance with digital assets, reinforcing its status as a leading hub for green and sustainable finance.
Chief Executive of the Hong Kong Monetary Authority, Eddie Yue, noted the significant increase in market participation, with more banks and first-time digital bond investors taking part. This reflects the progress made in scaling Hong Kong's digital bond market and lays the foundation for future integration with other digital money forms.
Platform and Participants
The digital green bonds are cleared and settled through the Central Moneymarkets Unit (CMU), with HSBC Orion acting as the digital assets platform. The issuance involved several major financial institutions as joint global coordinators, lead managers, and bookrunners, including HSBC, Bank of China (Hong Kong), BNP PARIBAS, and others.
This strategic issuance underscores Hong Kong's commitment to advancing its financial infrastructure and reinforcing its leadership in digital and sustainable finance.
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