On Tue, 29 Sep, the HKSAR Government announced successful pricing of around HK$20 billion in digital green bonds across four currencies ("HKD, RMB, USD, EUR"), setting a new world record for largest digital bond issuance with subscription ratios of 1.3 to 11.3 times.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On Tue, 29 Sep, the Government of the Hong Kong Special Administrative Region of China (the "HKSAR Government") announced the successful pricing of approximately HK$20 billion in digital green bonds denominated in four currencies—HKD, RMB, USD and EUR—under its Sustainable Bond Programme. The Digital Green Bonds were priced on 28 September following a virtual roadshow.
Issuance Structure and Pricing
The issuance comprised the following tranches: HK$5.5 billion for two years at 3.80%; RMB 7.5 billion for five years at 1.65%; USD 200 million for three years at 5.023%; and EUR 450 million for four years at 3.734%. Subscription ratios across the four currency tranches ranged from 1.3 to 11.3 times, establishing a new global record for the largest digital bond issuance by volume.
Innovative Settlement Infrastructure
As the fourth issuance under this programme since 2023, this transaction furthered innovation in settlement mechanics. In addition to traditional settlement rail and tokenised central bank money introduced in prior issuances, tokenised deposits facilitated by EnsembleTX were incorporated into the primary settlement process for the HKD tranche. This constituted the world's first digital bond integrating tokenised deposits denominated in HKD, advancing toward a more integrated digital ecosystem and establishing groundwork for exploring programmable features of digital money.
Adoption of Global Data Standards
The issuance adopted the International Capital Market Association's Bond Data Taxonomy ("BDT") Version 2.0, promoting data consistency, interoperability and end-to-end automation across the bond lifecycle. BDT constitutes a standardised, machine-readable language for key economic terms of a bond—including amounts, currency, maturity and interest—key dates such as pricing and settlement, and ancillary information including governing law, relevant parties, ratings and selling restrictions typically set out in a term sheet. Version 2.0 extends coverage to accommodate more complex issuance structures, introduces greater flexibility in data fields for diverse transaction types, and broadens application across the full bond lifecycle.
Key Terms of the Digital Green Bonds
The principal terms were as follows: issue size of approximately HK$20 billion equivalent; currencies in HKD, RMB, USD and EUR; issue ratings of AA-/Aa3/AA+ (Fitch/Moody's/S&P), on par with the issuer's long-term rating; governing law being Hong Kong law; settlement cycle at T+1; listing on The Stock Exchange of Hong Kong Limited. Proceeds were to be applied toward financing and/or refinancing projects falling within one or more Eligible Categories under the Government's Green Bond Framework.
Certification and Compliance
Vigeo Eiris provided a Second Party Opinion on the Government's Green Bond Framework. The Digital Green Bonds further received the Green and Sustainable Finance Certification Scheme Pre-issuance Stage Certificate from the Hong Kong Quality Assurance Agency.
Government Statements on Strategic Direction
The Financial Secretary, Mr Paul Chan, noted that this fourth issuance totalling HK$20 billion constituted the largest digital green bond offering globally. He observed strong market appetite for tokenised products issued in Hong Kong and highlighted that multi-currency denomination catered to asset diversification needs of both domestic and overseas investors while incorporating innovative technologies. The Government committed to continuing regular issuance of tokenised bonds, expanding use cases for underlying technologies, and leveraging fintech to advance the bond market.
The Secretary for Financial Services and the Treasury, Mr Christopher Hui, affirmed the HKSAR Government's ongoing commitment to supporting innovative forms of bond issuance and driving green transformation. He referenced Policy Statement 2.0 on the Development of Digital Assets in Hong Kong (released in 2025), which emphasised expansion of tokenised products, advancement of use cases and cross-sectoral collaboration, as well as the Chief Executive's 2026 Policy Address committing to broaden digital bond use cases and popularise such instruments. He further noted that this issuance enhanced public understanding of sustainable development integrated with fintech while reinforcing Hong Kong's position as a leading global green and sustainable finance hub.
The Chief Executive of the HKMA, Mr Eddie Yue, stated that since 2023 the Authority had broken new ground through HKSAR Government digital bond issuances. He affirmed continued commitment to maintaining leadership in digital finance, unlocking synergies across digital infrastructures and deepening the digital asset ecosystem, expressing encouragement at strong investor demand and expanding market participation with a view toward sustaining momentum for further market innovation.
Transaction Parties and Operational Infrastructure
The clearing and settlement system was operated through the Central Moneymarkets Unit ("CMU"), administered by the HKMA, with linkage to Euroclear and Clearstream. Settlement benefited from statutory settlement finality under Hong Kong law.
Joint Global Coordinators, Joint Lead Managers and Joint Bookrunners comprised HSBC, Bank of China (Hong Kong), Bank of Communications, BNP PARIBAS, Crédit Agricole CIB, ICBC (Asia), J.P. Morgan and Standard Chartered Bank. Additional Joint Lead Managers and Joint Bookrunners included Barclays, Citigroup, Deutsche Bank, Société Générale and UBS. The Joint Green and Sustainable Bond Structuring Banks were Crédit Agricole CIB, Bank of China (Hong Kong), BNP PARIBAS and Standard Chartered Bank.
The operational platform was HSBC Orion, provided by HSBC. Platform Direct Participants included Bank of China (Hong Kong), Bank of Communications, BNP PARIBAS, Crédit Agricole CIB, HSBC, ICBC (Asia) and Standard Chartered Bank. HSBC served as Trustee and Principal Paying Agent.
Legal advisers to the transaction comprised Allen Overy Shearman Sterling (to issuer), Ashurst Perkins Coie Hong Kong (to Platform Provider), and Linklaters (to banks and agents).
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