Joerg Hiller
Nov 25, 2025 07:36
The Hong Kong Mortgage Company Restricted units a brand new benchmark with its HK$25.3 billion public bond issuance, marking the most important in its historical past.
The Hong Kong Mortgage Company Restricted (HKMC) has achieved a milestone with the profitable issuance of multi-currency public benchmark bonds totaling HK$25.3 billion, equal to roughly US$3.3 billion. This landmark transaction, performed below the HKMC’s US$30 billion Medium Time period Notice Programme, represents the most important public bond providing within the company’s historical past, surpassing its earlier file set in October 2024, based on the Hong Kong Financial Authority.
Particulars of the Bond Issuance
The issuance, which was book-built and priced on November 18, 2025, contains 4 tranches: HK$10 billion in 2-year bonds, CNH 5 billion in 3-year bonds, US$1 billion in 5-year bonds, and a 30-year HK$2 billion social bond. The 30-year Hong Kong greenback social bond is notably the largest-ever of its variety in Hong Kong and marks the primary social bond issuance within the Asia-Pacific area aimed toward supporting the HKMC’s Reverse Mortgage Programme (RMP).
The bond issuance attracted a various vary of high-quality buyers, together with multilateral growth banks, government-related funds, banks, insurance coverage firms, and personal banks, amassing a peak order e-book of round HK$80 billion. Roughly 250 accounts had been allotted within the remaining distribution.
Supporting the Aged by way of Social Bonds
The proceeds from the 30-year social bond tranche are designated to assist the RMP, a part of the HKMC’s “Retire 3” merchandise. This initiative supplies a retirement planning resolution for aged owners, permitting them to leverage their property worth for supplementary money movement. As of October 2025, the programme had obtained 8,776 functions, with a median property worth of HK$5.5 million and a median month-to-month payout of HK$15,900. The typical age of members was 69 years.
Market Affect and Future Prospects
Howard Lee, Deputy Chief Government of the Hong Kong Financial Authority, emphasised the issuance’s position in reinforcing Hong Kong’s standing as a number one worldwide bond issuance hub and offshore Renminbi enterprise heart. Colin Pou, Government Director and CEO of the HKMC, highlighted the transaction’s success in attracting new buyers to the Hong Kong capital market and its contribution to selling sustainable financing and monetary inclusion for the aged.
The HKMC acknowledges the essential assist from 29 native and worldwide monetary establishments, which acted as Joint International Coordinators, Bookrunners, Lead Managers, and Structuring Banks. The social bond tranche was issued below the HKMC’s Social, Inexperienced, and Sustainability Financing Framework, additional particulars of which could be discovered on their official web site.
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