Clifford Chance advises HKMC on record-breaking HK$25.3 billion multi-currency bond issuance

Global law firm Clifford Chance has advised The Hong Kong Mortgage Corporation Limited (HKMC) on its issuance of multi-currency public benchmark bonds totalling HK$25.3 billion (approx. US$3.3 billion). This transaction marks HKMC’s largest-ever public bond offering to date.

The issuance comprises four tranches: HK$10 billion 2-year, CNH 5 billion 3-year, and US$1 billion 5-year bonds, together with a landmark HK$2 billion 30-year social bond. The net proceeds of the 2-year, 3-year and 5-year tranches will be used to meet general financing requirements. The 30-year tranche constitutes the largest-ever 30-year Hong Kong dollar bond issuance in Hong Kong and represents the first-ever social bond issuance in Asia Pacific dedicated to supporting a reverse mortgage programme.

Lead partner Mark Chan said, “We are honoured to continue our long-standing partnership with the HKMC on this landmark transaction. The record-breaking scale and the inclusion of the region’s first social bond for reverse mortgages underscore the depth of liquidity in Hong Kong’s capital market and the growing importance of sustainable finance in meeting the community’s diverse needs.”

Mark led the deal and was supported by senior associate George Mok, associate Christine Chan and trainee solicitor Kristy Lam.

This mandate builds on Clifford Chance’s extensive track record with the HKMC, having advised on its triple-currency, four-tranche HK$23.8 billion social bond issuance, triple-tranche issuance of HK$12 billion benchmark bonds and its inaugural dual-tranche social bonds.  The firm also advised the sole global coordinator and joint bookrunners on HKMC’s first and second ILBS issuances in 2023 and 2024.