HSBC Issues First Digital Native Bond From HK Corporate

Global law firm Ashurst represented The Hongkong and Shanghai Banking Corporation Limited (HSBC) on the provision of its digital assets platform – HSBC Orion (the Platform) to the Central Moneymarkets Unit (CMU) of the Hong Kong Monetary Authority (HKMA) in connection with the issuance of HK$1 billion digitally native notes (DN Notes) by HSBC as issuer.

This is the first digitally native bond issued by a Hong Kong corporate issuer, following the debut issuance of the world’s first multicurrency digital green bonds by the HKSAR government earlier this year, also on HSBC Orion. Ashurst advised HSBC on the use of the HSBC Orion platform for both transactions. Both are also listed on the Hong Kong Stock Exchange. This latest issuance showcases the flexibility of HSBC Orion as a technological platform using distributed ledger technology that can be applied to corporate entities.

Lead partner Ben Hammond commented: “We are delighted to have supported HSBC on another landmark transaction, which demonstrates the huge potential of HSBC Orion as a cutting-edge platform for digital issuances. This is a significant milestone for the development of the digital assets market in Hong Kong, and we are proud to have supported our client in their innovation and leadership in this space. Our team has extensive experience and expertise in advising on complex and novel transactions involving digital assets and innovative technology, and we look forward to continuing to assist our clients in navigating the legal and regulatory challenges and opportunities in this fast-evolving area.”

The Ashurst multidisciplinary and cross-border team was led by financial regulatory partner and Hong Kong managing partner Ben Hammond, London-based bank industry global co-chair Etay Katz, Hong Kong-based debt capital markets partner and global head of finance, funds and restructuring Jini Lee, and digital economy transaction partner Josh Cole, supported by senior associates Jamie Jefferson Ng, Janet Ouyang and Sean Ching, and associate Anna He. The wider team included Hong Kong-based lawyer Anson Chan and trainees Ian Chow, Sasha Sawant, and Natasha Saunders.

Source: Ashurst