HKMC Closes $457.3 Mn Through Fourth Bauhinia Infrastructure Securitisation

HKMC Completes Fourth Bauhinia Issuance

HKMC has completed Bauhinia 4, its fourth infrastructure loan-backed securities issuance. The company issued five classes of notes, which are now listed on the Hong Kong Stock Exchange.

The underlying portfolio has a total value of approximately US$481.5 million. The issuance allows investors to gain exposure to infrastructure-related debt through structured financial products.

Strong Investor Participation

The issuance attracted investors from different financial sectors, including asset managers, insurance companies, pension funds, family offices, hedge funds, private banks, and corporates.

The Asian Infrastructure Investment Bank (AIIB) returned as an anchor investor through its US$300 million investment programme. HKMC also reported growing interest from Asian banks.

Sustainability Tranche Supports Green and Social Assets

Bauhinia 4 includes a US$128.5 million sustainability tranche backed by green and social assets. The issuance also introduced an unrated Class D to meet growing investor interest in mezzanine investment opportunities.

HKMC is acting as the sponsor, collateral manager, and risk retention holder for the transaction.

HKMC Continues Infrastructure Financing Strategy

Bauhinia 4 follows HKMC's previous infrastructure securitisation issuances, which began in 2023. The latest transaction also includes part of the portfolio from Bauhinia 1, which reached the end of its three-year non-call period.

HKMC aims to develop infrastructure securitisation as a regular investment channel and attract more private capital into infrastructure projects. The initiative also supports Hong Kong's ambition to strengthen its position as an international infrastructure financing hub.

About Hong Kong Mortgage Corporation

The Hong Kong Mortgage Corporation (HKMC) is a Hong Kong-based financial institution established to support the development of the local financial market.

It works across mortgage financing, loan securitisation, and infrastructure financing to expand funding opportunities and support financial market development.

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