Korea Housing Finance Corporation Issues First Public Institution Digital Bonds, Raising USD 200 Million via Blockchain
Successful Issuance Using Hong Kong Tokenization Platform
"Accelerating Innovation to Lead Digital Financial Transformation"
Korea Housing Finance Corporation (HF, President Kim Kyunghwan) has successfully issued digital bonds worth USD 200 million using distributed ledger technology. This marks the first time for a public institution and is the largest issuance of its kind in Korea.
On May 8, Korea Housing Finance Corporation announced that it issued the digital bonds using the "Orion" tokenization platform, which is linked to the clearing and settlement system of the Hong Kong Monetary Authority (HKMA).
This bond issuance is characterized by processing the entire cycle—from issuance and registration to settlement—within a blockchain-based environment. As a result, the bond settlement period, which previously took five business days, has been shortened to three business days, thereby improving both the efficiency and stability of funding operations.
The bonds have a maturity of two years, and the issuance interest rate was set at the Secured Overnight Financing Rate (SOFR) plus 0.39 percentage points.
In particular, by utilizing the issuance cost subsidy program operated by the Hong Kong financial authorities to invigorate the digital bond market, additional cost savings are also anticipated.
Korea Housing Finance Corporation plans to use this issuance as an opportunity to enhance its capacity to respond to the global digital financial market and accelerate the establishment of a next-generation funding system.
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A representative from the corporation stated, "This issuance is not simply about diversifying funding methods, but is a strategic move to lead the digital financial transformation. We will continue to drive innovation to build a digital asset ecosystem, which is one of the key national policy objectives."
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