Hong Kong Mortgage Corporation Issues Record $1.5 Billion Digital Bond

The issuance, part of a $30 billion Medium Term Note Programme, successfully attracted HK$24 billion in orders. The transaction was split into three tranches: a HK$6 billion two-year bond, a HK$2.5 billion five-year bond, and a three-year bond valued at RMB3 billion. The five-year tranche set a new maturity benchmark for digital bonds denominated in the local currency.

By utilizing distributed ledger technology via the Central Moneymarkets Unit, the HKMC reduced settlement cycles from five business days to three. This efficiency gain, coupled with the integration of Euroclear and Clearstream infrastructure, underscores the city's strategy to solidify its standing as a premier international financial hub. Deputy Chief Executive Lee Wai Man noted that the project is intended to catalyze broader market adoption of tokenized assets among intermediaries and global investors.

This milestone follows a series of government-backed initiatives, including green bond sales in 2023 and 2024. To further support this ecosystem, the Hong Kong Monetary Authority has recently convened an expert group featuring major financial players like JPMorgan, HSBC, and UBS. The group is tasked with refining market practices and regulatory frameworks, ensuring the city remains at the forefront of the digital debt market as regional competition intensifies.