HKMC’s HK$12 Billion Benchmark Bond Issuance

The Hong Kong Mortgage Corporation Limited (HKMC) announced today (29 February) the successful issuance of its triple-tranche Hong Kong dollar (HKD) benchmark bonds totalling HK$12 billion (Issuance) under its US$30 billion Medium Term Note Programme, marking it the largest-ever HKD senior unsecured public bond transaction and the largest 10-year HKD public bond issuance in the institutional market.  The Issuance was book-built and priced in Hong Kong on 21 February with the participation of 20 local and international financial institutions.

The triple-tranche issuance comprises HK$8 billion 2-year, HK$3 billion 5-year and HK$1 billion 10-year bonds.  With the strong market reopening after the Chinese New Year and a series of investor roadshows, the Issuance was well received by a diverse group of high-quality local and overseas institutional investors with strong orderbook of over HK$37 billion and final allocation to over 180 accounts, including banks, investment and retirement funds, insurance companies, central bank and government-related funds, family offices and private banks.  Major terms of the Issuance are highlighted in the Annex.

Mr Raymond Li, Executive Director and Chief Executive Officer of the HKMC, said, “We are very pleased to see the successful issuance of the triple-tranche HKD benchmark bonds.  This multiple-tenor issuance not only extends the HKMC’s bond issuance across the yield curve, but also sets a solid benchmark for other public sector entities and local high-grade issuers.  We trust that this could inspire more debt issuance activities in Hong Kong and provide the investing community with high-quality HKD debt instruments, thereby promoting further development of the local bond market.”

The Hong Kong Mortgage Corporation Limited
29 February 2024