HKSAR Government Issues Multi‑Currency Digitally Native Green Notes with Option for Tokenized Central Bank Money Settlement

A&O Shearman advised the Government of the Hong Kong Special Administrative Region of the People’s Republic of China on the issuance of multi‑currency, digitally native green notes. The HKSAR Government issued around HKD10 billion of multi‑currency, digitally native green notes under its HKD500 billion global medium term note programme, with the notes listed on The Stock Exchange of Hong Kong Limited. The issuance comprised: - HKD2.5 billion, 2.50% digitally native notes due 2027 (HKD DN Notes); - CNY2.5 billion, 1.90% digitally native notes due 2030 (CNY DN Notes); - USD300 million, 3.625% digitally native notes due 2028 (USD DN Notes); - EUR300 million, 2.50% digitally native notes due 2029 (EUR DN Notes). This transaction marks the HKSAR Government’s third consecutive year of digital bond issuance, following the inaugural issuance in 2023. The bonds were issued under the Government Sustainable Bond Programme and the proceeds will be used to finance and/or refinance eligible projects under the HKSAR Government’s Green Bond Framework. A key innovation in this issuance is the option to settle the HKD and RMB tranches via tokenized central bank money alongside traditional settlement rails in the primary issuance process, demonstrating application of distributed ledger technology to real‑world capital markets settlement. A&O Shearman represented the Government of the Hong Kong Special Administrative Region with a team composed by: Agnes Tsang, Partner; Tsz Kwan (Gordon) Ng, Senior Associate; Eileen Qu, Associate; Michael Leung, Paralegal (pending admission as a Hong Kong‑qualified solicitor); Eunice Wong, Trainee.

HKSAR Government Issues Multi‑Currency Digitally Native Green Notes with Option for Tokenized Central Bank Money Settlement

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