HKMC raised $3 billion in Asia Pacific’s largest social bond issuance, aimed at supporting 40,000 SMEs and 400,000 jobs under the Special 100% Loan Guarantee Scheme.
The Hong Kong Mortgage Corporation Limited (HKMC) has set a new record in the Asia Pacific region with its largest-ever social bond issuance, raising around $3 billion. This latest issuance, conducted across four tranches in multiple currencies, attracted significant investor interest, with over 200 institutional investors participating and a peak order book reaching HK$55 billion. The proceeds will primarily support Hong Kong's Special 100% Loan Guarantee Scheme, aimed at providing financial relief to around 40,000 local small and medium-sized enterprises (SMEs) and safeguarding 400,000 jobs as part of the region's ongoing COVID-19 recovery efforts.
The issuance marks an important milestone for the region's bond market, with two of the tranches setting new benchmarks for Hong Kong dollar and Renminbi-denominated institutional bonds. Additionally, the bonds were issued under HKMC's Social, Green, and Sustainability Financing Framework, reflecting the corporation’s commitment to sustainable finance. This move is expected to strengthen Hong Kong’s position as an international financial hub and provide crucial support to SMEs, reinforcing the economic stability and resilience of the region.
HKMC’s success in attracting a diverse range of investors highlights growing confidence in the region’s financial markets and sets a new standard for future social bond issuances in the Asia Pacific. The funds raised are anticipated to have a lasting positive impact on both the local economy and the development of sustainable finance.
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