Hong Kong hopes to raise US$102 mln from digital green bonds debut: Bloomberg

The Hong Kong government is looking to raise US$102 million through the pilot issuance of its digital green bonds, according to a Monday report from Bloomberg.

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Fast facts

• Hong Kong officials have reportedly asked Bank of China Ltd., Credit Agricole S.A., Goldman Sachs Group, Inc., and HSBC Holdings Plc. to start holding investor calls for the issuance of “tokenized green notes.”

• Beneficial interest made on the bonds will be recorded on a blockchain-based platform provided by Goldman Sachs, according to people familiar with the matter cited by Bloomberg. Proceeds from the proposed bonds will finance or repay eligible projects under the city’s green bond framework.
• The bond sales may start as early as this week, according to the South China Morning Post.

• The city unveiled its digital green bond plans last November, with top officials claiming that the initiative could help bond issuers access cheaper funding for sustainable investments while reducing risks of greenwashing.

• Joseph Chan, Hong Kong’s under secretary for Financial Services and the Treasury, said last November that the first pilot sales of the bonds would test compatibility with the city’s existing regulatory framework, financial infrastructure and market practices.
• Hong Kong plans to issue US$22.5 billion worth of green bonds over the next five years, as part of the city’s ambition to become a green financial hub.

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