According to a statement made on Thursday, the Hong Kong government successfully issued its first tokenized green bond for 800 million Hong Kong dollars (about US$101 million).
According to the statement by the Hong Kong Monetary Authority, the bond was sold by the government of the People’s Republic of China’s Hong Kong Special Administrative Area (HKSAR) under its green bond program and is the first green bond ever issued by a government worldwide.
The government announced that “Processes of the Bond Lifecycle, including Coupon Payment, Settlement of Secondary Trading, and Mature Redemption, will likewise be Digitalized and Performed on the Private Blockchain Network.” In partnership with Bank of China (Hong Kong), Crédit Agricole CIB, and HSBC, the 365-day bond with a 4.05% yield was made available; Goldman Sachs served as the platform provider. The notice further said that the bond was not intended for distribution in the United States, Canada, Japan, or any other restricted country.
From at least 2021, the Hong Kong Monetary Authority has been researching the issuing of tokenized green bonds. Green bonds are issued to finance environmentally beneficial initiatives, and tokenization makes it simple and convenient to sell them online.
According to Christopher Hui, secretary for Financial Services and the Treasury, “green bond tokenization is one of the pilot projects announced in the Government’s Policy Statement on Development of Virtual Assets in Hong Kong.” “The Government will work to create a conducive environment to promote sustainable and responsible development of the virtual assets sector through a clear policy stance and road map. Market players are welcome to carry out tokenized issuances in Hong Kong.
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