Zach Anderson
Nov 25, 2025 07:44
The Hong Kong Mortgage Corporation Limited (HKMC) achieves a record HK$25.3 billion bond issuance, marking a significant milestone in Hong Kong’s bond market.
The Hong Kong Mortgage Corporation Limited (HKMC) has announced a landmark achievement in the financial sector with the issuance of multi-currency public benchmark bonds totaling HK$25.3 billion (approximately US$3.3 billion), according to the Hong Kong Monetary Authority. This issuance, under the HKMC’s US$30 billion Medium Term Note Programme, marks the largest-ever public bond offering by the corporation, surpassing its previous record of HK$23.8 billion in October 2024.
Details of the Issuance
The issuance, finalized on November 18, 2025, comprises four tranches: a HK$10 billion 2-year bond, CNH 5 billion 3-year bond, US$1 billion 5-year bond, and a notable 30-year HK$2 billion social bond. This social bond tranche is particularly significant as it represents the largest 30-year HKD bond issuance in Hong Kong and the first social bond issuance in Asia Pacific aimed at supporting the HKMC’s Reverse Mortgage Programme (RMP). The RMP facilitates financial support for the elderly in Hong Kong by allowing them to leverage their property value for supplementary income.
Investor Response and Market Impact
The issuance was met with robust demand from a diverse array of investors, including multilateral development banks, government-related funds, banks, insurance companies, and private banks. The orderbook peaked at approximately HK$80 billion, with final allocations made to around 250 accounts. This strong investor interest underscores the confidence in Hong Kong’s bond market and the HKMC’s financial strategies.
Strategic Importance
Howard Lee, Deputy Chief Executive of the Hong Kong Monetary Authority and Executive Director of the HKMC, highlighted that this issuance reinforces Hong Kong’s status as a leading international bond issuance hub and offshore Renminbi business center. Moreover, Colin Pou, CEO of the HKMC, noted that the social bond tranche not only promotes sustainable financing but also contributes to the development of the retirement planning market and the silver economy in Hong Kong.
The HKMC’s success in this record-breaking bond issuance is attributed to the collaborative efforts of 29 local and international financial institutions involved as Joint Global Coordinators, Joint Bookrunners, Joint Lead Managers, and Joint Structuring Banks.
Sustainability and Future Prospects
The social bond tranche was issued under the HKMC’s Social, Green, and Sustainability Financing Framework (SGS Framework), reflecting the corporation’s commitment to sustainable finance. This initiative is expected to pave the way for future bond issuances connecting local, Mainland Chinese, and international investors, further solidifying Hong Kong’s position in the global financial market.
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Source: https://blockchain.news/news/hong-kong-mortgage-corporation-sets-record-bond-issuance
