Hong Kong has taken a significant step towards sustainable finance with the issuance of 800 million Hong Kong dollars ($103 million) in tokenized green bonds. The move is part of the government’s efforts to promote green financing and align the financial sector with environmental objectives, media reports said.
The tokens, issued by the Hong Kong Monetary Authority (HKMA), were sold to institutional investors and were fully subscribed to within hours of their release. The bonds will have a tenor of five years and a coupon rate of 2.5%.
The tokenized green bonds will be issued on the Ethereum blockchain, allowing investors to purchase, trade, and transfer the bonds through a decentralized platform. The use of blockchain technology will enable greater transparency and efficiency in the issuance and trading of bonds, reducing costs and improving accessibility for investors.
The proceeds from the tokenized green bonds will be used to finance environmentally-friendly projects such as renewable energy, energy efficiency, and green buildings. The bonds will also adhere to the International Capital Market Association’s Green Bond Principles, ensuring that they meet global standards for green finance.
The issuance of tokenized green bonds is a significant development in Hong Kong’s green finance agenda, highlighting the city’s commitment to sustainability and promoting green investments. It also showcases the potential of blockchain technology in transforming the financial sector and facilitating the growth of green finance.
