Global law firm Clifford Chance has advised The Hong Kong Mortgage Corporation Limited (HKMC) on the issuance of its triple-currency, four-tranche social bond issuance with a total value equivalent to HK$23.8 billion (or US$3 billion equivalent)
The four-tranche issuance comprises
1. HK$7 billion two-year
2. HK$8 billion five-year
3. RMB2 billion seven-year
4. US$850 million three-year.
The net proceeds of the notes issued will, according to HKMC, be mainly used to finance or refinance the loans under the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme.
This transaction has set new benchmarks in Hong Kong, significantly advancing the region’s bond market development. It marks several market firsts:
- The largest social bond issuance in Asia Pacific
- The two HK$ tranches, totalling HK$15 billion, represent the largest-ever institutional bond denominated in Hong Kong dollar
- The RMB tranche is the first-ever 7-year institutional bond denominated in Renminbi.
Lead partner Mark Chan said, “We are delighted to have advised the Hong Kong Mortgage Corporation Limited on this landmark social bond issuance, the largest in Asia Pacific. This transaction, which sets new benchmarks, underscores the robust investor confidence in Hong Kong’s financial markets and reflects the growing momentum for sustainable finance in the region. We are proud to support HKMC in its mission to advance social impact and reinforce Hong Kong’s position as a leading international financial centre.”
Mark was supported by senior associate George Mok, associate Christine Chan and trainee solicitor Kelly Shi.
HKMC is a company wholly owned by the Hong Kong SAR Government through the Exchange Fund.
This transaction builds on Clifford Chance’s track record on debt capital markets issuances by the public sector, having previously advised HKMC’s on both its triple-tranche issuance of HK$12 billion benchmark bonds and its inaugural dual-tranche social bonds. The firm also advised on HKMC’s first and second infrastructure loan-backed securities (ILBS) issuance in 2023 and 2024 respectively.
