HKMC successfully priced its inaugural HK$12 billion digital bonds on 10 June 2026, marking the largest global digital bond issuance and first public sector digital bond in Hong Kong.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
SPOTLIGHT ON
FAMILY OFFICES
On Thu, 11 Jun, The Hong Kong Mortgage Corporation Limited ("HKMC") announced the successful pricing of its inaugural digital bonds totalling approximately HK$12 billion equivalent under its US$30 billion Medium Term Note Programme. Priced in Hong Kong on 10 June 2026, this landmark transaction represents the largest-ever digital bond issuance globally, marking HKMC as the first public sector entity in Hong Kong to issue digital bonds. The 5-year HKD tranche also sets a new benchmark as the longest tenor for an HKD-denominated digital bond.
Transaction Overview and Market Significance
The triple-tranche issuance comprises HK$6 billion 2-year, HK$2.5 billion 5-year, and CNH 3 billion 3-year digital bonds, building on the HKSAR Government’s mechanism. The offering attracted a peak orderbook of around HK$24 billion equivalent from over 100 accounts, including local, Southbound Bond Connect, and international institutional investors such as central banks, multilateral development banks, and asset management companies.
Issuance Structure and Investor Participation
Created on a distributed ledger technology platform operated by the Central Moneymarkets Unit ("CMU"), the bonds are cleared and settled via CMU infrastructure linked to Euroclear and Clearstream. This digitally native format enhances operational efficiency, shortening the settlement cycle from 5 to 3 business days and marking a significant milestone in HKMC’s digital finance journey.
Technology and Operational Efficiency
Mr Howard Lee, HKMA Deputy Chief Executive and HKMC Executive Director, highlighted that the issuance supports the HKSAR Government’s strategic roadmap to cement Hong Kong’s position as a global fixed income hub, deepening the digital asset ecosystem. Mr Colin Pou, HKMC CEO, noted strong market reception and growing participation from arranging banks and first-time digital bond investors, reinforcing Hong Kong’s role in bridging traditional finance with the digital asset era.
Strategic Commentary and Market Outlook
The HKMC appreciates the professional advice and support from the 16 local and international financial institutions serving as Joint Global Coordinators, Joint Bookrunners, and Joint Lead Managers. The full list of participating institutions is set out at the Annex.
Acknowledgements
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