The SAR government announced the successful pricing of around HK$20 billion worth of digital green bonds, the largest digital bond issuance globally to date, with HSBC (0005), Standard Chartered, and other banks supporting the issuance.
The bond is denominated in HK dollars, yuan, US dollars, and euros under the Government Sustainable Bond Programme. The subscription ratio across four currencies has reached 1.3 to 11.3 times.
Following a virtual roadshow, the digital green bonds were priced as HK$5.5 billion 2-year tranche at 3.80 percent, 7.5 billion yuan 5-year tranche at 1.65 percent, US$200 million 3-year tranche at 5.023 percent, and €450 million 4-year tranche at 3.734 percent.
HSBC Orion serves as the digital assets platform and connecting to EnsembleTX to facilitate interbank settlement using tokenised deposits. Investors in both the Hong Kong dollar and yuan tranches can settle using tokenised central bank money alongside traditional settlement rails in the primary issuance process.
David Liao, co-chief executive, Asia and Middle East, HSBC, highlighted that the transaction shows how digital assets, tokenised deposits and tokenised central bank money can operate across interoperable infrastructure to improve speed and efficiency, while still allowing established settlement arrangements where suitable.
He said the transaction brings together the key components needed for broader adoption: choice, interoperability and practical market utility.
David Yim, head of capital markets, Greater China and North Asia at Standard Chartered, said that by enabling T+1 settlement, the transaction demonstrates the potential of next-generation financial infrastructure to enhance market efficiency and support overall market development.
