The Hong Kong Mortgage Corporation Limited (HKMC) and MUFG Bank, Ltd. (MUFG) signed a Memorandum of Understanding (MoU) today (26 January 2021) on an infrastructure loan sales framework.
The MoU sets out the principal terms for potential infrastructure loan sales by MUFG to the HKMC, including the loan selection criteria, mode of sales and engagement process, with an aim to facilitate loan sale cooperation between MUFG and the HKMC. This represents the first MoU that the HKMC has signed with a commercial bank, and would further the mandates of the HKMC’s Infrastructure Financing and Securitisation (IFS) business to fill the infrastructure financing market gaps and to consolidate Hong Kong’s position as an infrastructure financing hub.
The Executive Director and Chief Executive Officer of the HKMC, Mr Raymond Li said, “The MoU enhances the collaboration between MUFG and the HKMC which has started since the commencement of the IFS business of the HKMC. The steady and high quality infrastructure financing deal flow presented by MUFG is conducive to HKMC’s business objective of infrastructure loan securitisation after accumulating a diversified and sizeable asset portfolio.”
Mr Richard Yorke, MUFG’s Head of Global Corporate and Investment Banking, Asia Pacific, said: “MUFG is an active player in the infrastructure financing market, and as part of its overall strategy, has long sought to expand its investor base in Asia Pacific beyond the traditional banking sector. The HKMC is a key strategic partner for MUFG, and we hope this MoU will allow us to further enhance our partnership and accelerate the delivery of our respective business objectives.”
About the HKMC
The HKMC, established in 1997, is wholly-owned by the Hong Kong SAR Government through the Exchange Fund. Operating on prudent commercial principles, the HKMC strives to promote stability of the banking sector, wider home ownership, as well as development of the local debt market and retirement planning market.
To further its mandates on promoting banking sector stability and local debt market development, the HKMC commenced the implementation of the Infrastructure Financing and Securitisation business in 2019, with the aims to fill the infrastructure financing market gaps, facilitating infrastructure investment and financing flows; and to help consolidate Hong Kong’s position as an infrastructure financing hub, benefitting financial and professional service sectors.
Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with around 2,600 locations in more than 50 markets. The Group has over 180,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing.
The Group aims to “be the world’s most trusted financial group” through close collaboration among our operating companies and flexibly respond to all of the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG’s shares trade on the Tokyo, Nagoya, and New York stock exchanges.
MUFG Bank, Ltd. is Japan’s premier bank, with a global network spanning more than 50 markets. Outside of Japan, the bank offers an extensive scope of commercial and investment banking products and services to businesses, governments and individuals worldwide.
In Asia, MUFG has a presence across 20 markets – Australia, Bangladesh, Cambodia, China, Hong Kong, Indonesia, India, South Korea, Laos, Malaysia, Mongolia, Myanmar, New Zealand, Pakistan, Philippines, Singapore, Sri Lanka, Taiwan, Thailand and Vietnam.
It has also formed strategic partnerships with some of the most prominent banks in Southeast Asia, further augmenting its unrivalled network across the region – VietinBank in Vietnam, Krungsri in Thailand, Security Bank in the Philippines and Bank Danamon in Indonesia.
The Hong Kong Mortgage Corporation Limited
26 January 2021