The Hong Kong Special Administrative Region (HKSAR) is experimenting with a tokenised green bond offering, it has emerged, in a bid to combine the green bond market with financial technology,
The offering, amounting to a total HK$800m is the first of its kind globally and was priced at 4.05%.
Critical parts of the bond transaction, including secondary trading and maturity redemption, will be performed on a private blockchain network. Crucially, on-chain records will be legally definitive.
The HKSAR said a white paper will be released shortly, documenting lessons learnt from the experience.
Financial secretary Paul Chan explained: “The successful issuance of this tokenised green bond marks an important milestone as it demonstrates Hong Kong’s strengths in combining bond market, green and sustainable finance as well as fintech. The HKSAR government will continue to promote the innovative development of the financial market.”
