Clifford Chance advises HSBC on Hong Kong’s first digital bond by a corporate issuer

Global law firm Clifford Chance has advised the Hongkong and Shanghai Banking Corporation Limited (HSBC) on the issuance of 1-year 3.6% native digital bonds under its MTN Programme on the HSBC Orion platform. The platform is linked to the Central Moneymarkets Unit operated by the Hong Kong Monetary Authority. This HK$1 billion issuance marks the first digital note listed on the Hong Kong Stock Exchange (HKEX) by a corporate issuer and the first English law digital bond issued in Hong Kong.

Partner Mark Chan said, “We are pleased to have advised on this pioneering digital bond issuance under English law, which sets several market precedents. This transaction highlights the growing appeal of digital bonds, providing investors with greater efficiency and ease. We foresee a substantial increase in demand for digital bonds, particularly if they can benefit from the liquidity and scale offered by platforms like HSBC Orion.”

Partner Matteo Sbraga added, “This issuance emphasises the flexibility and reliability of English law in supporting cutting-edge financial innovations. By leveraging English law, we have ensured a robust legal foundation that can accommodate the complexities of digital bonds. This milestone not only enhances investor confidence but also sets a precedent for future issuances in the digital bond market.”

Mark and Matteo co-lead the transaction and were supported by senior associates George Mok and Jeffery Hung, associates Christine Chan and Louis Yee. Partners Rocky Mui and Terry Yang also advised on regulatory aspects of the issuance.

This transaction extends Clifford Chance’s established track record of advising HSBC on pioneering digital finance transactions. Notable matters include advising HSBC on the launch of a market-first digital gold token for Hong Kong retail investors and advising HSBC on its appointment as the sole settlement bank in Hong Kong for FPS and Thailand’s PromptPay QR payment programme.