Multi-Currency Digital Green Bonds
The Hong Kong Monetary Authority (HKMA) announces the issuance of two-year digital green bonds denominated in HKD, RMB, USD and EUR under the government green bond program, with a total value of HK$6 billion.
The bonds issued this time are the world’s first multi-currency digital green bonds and the second digital bond issuance in Hong Kong. In February last year, Hong Kong issued HK$800 million in tokenized government green bonds, raising funds for green project financing and refinancing.
Related Post: Hong Kong Issues Tokenized Government Green Bonds
Introduction to Multi-Currency Digital Green Bonds
The multi-currency green bonds issued this time are issued digitally and do not require the use of traditional central securities custody platforms. International investors can choose to use Euroclear or Clearstream to participate in bond transactions. This method of issuance expands the pool of investors and can increase the liquidity of the bond. In addition, green bond issuance documents and third-party evaluation reports can be viewed on the digital asset platform.
The multi-currency digital green bonds issued this time also adopted the Bond Data Taxonomy (BDT) proposed by International Capital Market Association (ICMA). The BDT provides a standardized language for key bond terms (e.g., currency, rating, governing law) and is designed to reduce risk in bond issuance, trading, settlement, and distribution.
The Hong Kong Monetary Authority believes that the multi-currency digital green bonds reflects Hong Kong’s advantages in sustainable finance and financial technology. It will continue to promote technological innovation and improve the efficiency and transparency of financial transactions.
Reference:
Hong Kong Monetary Authority – HKSAR Government’s Digital Green Bonds Offering
