Zach Anderson
Nov 25, 2025 07:44
The Hong Kong Mortgage Company Restricted (HKMC) achieves a file HK$25.3 billion bond issuance, marking a major milestone in Hong Kong’s bond market.
The Hong Kong Mortgage Company Restricted (HKMC) has introduced a landmark achievement within the monetary sector with the issuance of multi-currency public benchmark bonds totaling HK$25.3 billion (roughly US$3.3 billion), in accordance with the Hong Kong Financial Authority. This issuance, beneath the HKMC’s US$30 billion Medium Time period Observe Programme, marks the largest-ever public bond providing by the company, surpassing its earlier file of HK$23.8 billion in October 2024.
Particulars of the Issuance
The issuance, finalized on November 18, 2025, contains 4 tranches: a HK$10 billion 2-year bond, CNH 5 billion 3-year bond, US$1 billion 5-year bond, and a notable 30-year HK$2 billion social bond. This social bond tranche is especially important because it represents the biggest 30-year HKD bond issuance in Hong Kong and the primary social bond issuance in Asia Pacific geared toward supporting the HKMC’s Reverse Mortgage Programme (RMP). The RMP facilitates monetary help for the aged in Hong Kong by permitting them to leverage their property worth for supplementary earnings.
Investor Response and Market Affect
The issuance was met with strong demand from a various array of traders, together with multilateral growth banks, government-related funds, banks, insurance coverage corporations, and personal banks. The orderbook peaked at roughly HK$80 billion, with ultimate allocations made to round 250 accounts. This robust investor curiosity underscores the boldness in Hong Kong’s bond market and the HKMC’s monetary methods.
Strategic Significance
Howard Lee, Deputy Chief Govt of the Hong Kong Financial Authority and Govt Director of the HKMC, highlighted that this issuance reinforces Hong Kong’s standing as a number one worldwide bond issuance hub and offshore Renminbi enterprise heart. Furthermore, Colin Pou, CEO of the HKMC, famous that the social bond tranche not solely promotes sustainable financing but additionally contributes to the event of the retirement planning market and the silver economic system in Hong Kong.
The HKMC’s success on this record-breaking bond issuance is attributed to the collaborative efforts of 29 native and worldwide monetary establishments concerned as Joint International Coordinators, Joint Bookrunners, Joint Lead Managers, and Joint Structuring Banks.
Sustainability and Future Prospects
The social bond tranche was issued beneath the HKMC’s Social, Inexperienced, and Sustainability Financing Framework (SGS Framework), reflecting the company’s dedication to sustainable finance. This initiative is predicted to pave the way in which for future bond issuances connecting native, Mainland Chinese language, and worldwide traders, additional solidifying Hong Kong’s place within the world monetary market.
Picture supply: Shutterstock
