The Hong Kong Monetary Authority (HKMA) signed an agreement with the International Finance Corporation (IFC), a member of the World Bank Group, yesterday (19 September) in London, committing US$1 billion to the innovative Managed Co-Lending Portfolio Program (MCPP) debt mobilization platform for emerging markets. The HKMA will support IFC in financing projects across more than 100 countries, including in infrastructure, telecom, manufacturing, agri-business and services.
“MCPP is an essential part of IFC’s business development in emerging markets. This new partnership with the HKMA signifies the expansion of IFC’s base of important long-term, strategic partners. With the collaborative efforts of two institutions, we look forward to further realizing the growth potential of emerging markets in a sustainable manner,” said Mr Dimitris Tsitsiragos, IFC Vice President, New Business at the signing ceremony. “The HKMA’s participation in MCPP will allow IFC to provide more financing to projects, benefiting millions of people by creating jobs, raising living standards, and improving connectivity.”
The Chief Executive of the HKMA, Mr Norman Chan said, “We are very pleased about this new partnership with IFC, which provides a useful platform for the HKMA to broaden its investment opportunities in the credit market.”
“Emerging markets present a broad array of untapped investment opportunities with good long-term growth potential. Joining hands with IFC allows long-term institutional investors like the HKMA to ride on the considerable expertise, experience and network of IFC in sourcing investable opportunities with proper risk management and governance framework. Together, we will support commercially viable projects in emerging markets.”
“Noting the attractiveness of steady long-term return in infrastructure investments, the HKMA has been active in expanding this new asset class for the Exchange Fund. The setting up of the Infrastructure Financing Facilitation Office (IFFO) has facilitated this process by bringing together like-minded investors, multilateral development institutions like IFC and project developers. IFFO will continue to play a catalytic role in pooling together interested equity and credit investors for infrastructure investments in emerging markets.”
Mr Jingdong Hua, Vice President and Treasurer of IFC, warmly welcomed the HKMA as a new partner. “This signing with one of the world’s most respected institutional investors demonstrates again that MCPP as a mobilization platform has widespread appeal,” Mr Hua said, “We have received keen interest from the market, and doubled the amount of financing available under MCPP to US$6 billion. With these resources now available, IFC can finance vital projects that will also help the poor. We look forward to working together.”
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record US$19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit http://www.ifc.org.
About the HKMA
The HKMA is the government authority in Hong Kong responsible for maintaining monetary and banking stability. It was established in April 1993 by merging the Office of the Exchange Fund and the Office of the Commissioner of Banking.
The HKMA’s policy objectives are:
• to maintain currency stability within the framework of the Linked Exchange Rate System;
• to promote the stability and integrity of the financial system, including the banking system;
• to help maintain Hong Kong’s status as an international financial centre, including the maintenance and development of Hong Kong's financial infrastructure; and
• to manage the Exchange Fund.
As part of the HKMA, IFFO’s mission is to facilitate infrastructure investments and their financing by working with a cluster of key stakeholders. The functions of IFFO are:
• providing a platform for information exchange and experience sharing;
• building capacity and knowledge on infrastructure investments and financing;
• promoting market and product development; and
• facilitating infrastructure investment and financing flows.
By establishing IFFO, the HKMA can play a valuable role as a catalyst in the facilitation of infrastructure investments and their financings with its mandate to promote Hong Kong as an international financial centre. For more information about IFFO, please visit http://www.iffo.org.hk.
Hong Kong Monetary Authority
International Finance Corporation
20 September 2017
Mr Dimitris Tsitsiragos, IFC Vice President, New Business (left) greets Mr Norman Chan, Chief Executive of the HKMA (right). HKMA's new partnership with IFC provides a useful platform for the HKMA to broaden its investment opportunities in the credit market.
Mr Dimitris Tsitsiragos, IFC Vice President, New Business (left) and Mr Norman Chan, Chief Executive of the HKMA (right) sign an agreement on HKMA committing US$1 billion to IFC's MCPP for investing across sectors in emerging markets.