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Banking & finance
Opinion
SCMP Editorial
Editorial
SCMP Editorial

Hong Kong breaks new fintech ground with tokenised green bond

Hong Kong is positioning itself to connect conventional finance with fintech while developing into a global hub for sustainable financing

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People take in the view of Hong Kong’s skyline from K11 Musea in Tsim Sha Tsui on February 10. Photo: Eugene Lee
SCMP Editorial
Editorials represent the views of the South China Morning Post on the issues of the day.
Nowadays, it seems everything is tokenised. The latest? Hong Kong has issued a record HK$10 billion (US$1.3 billion) tokenised green bond, the world’s largest digitalised bond offering of its kind. With the completion of the pricing of the bond, investor demand has been strong. The offering attracted HK$130 billion in bidding from mostly professional and institutional investors.

It shows Hong Kong can sell new financial products that generate tremendous investor interest. A big attraction is that the new bonds can be settled in e-HKD or e-CNY, which are tokenised central bank currencies.

Their popularity and safety is more proof that the government and the Hong Kong Monetary Authority’s (HKMA) drive to promote fintech is bearing fruit.

The bond has four tranches, which are divided into different durations in four currencies: the HK$2.5 billion, two-year tranche for 2.5 per cent interest annually; the 2.5 billion yuan (US$351 million), five-year tranche for 1.9 per cent annually; the US$300 million, three-year tranche for 3.633 per cent; and the 300 million euro (US$348 million), four-year tranche for 2.512 per cent.

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