The Hong Kong Mortgage Corporation Limited (HKMC) has completed its fourth infrastructure loan-backed securities issuance, Bauhinia 4, issuing USD 457.3 million of notes listed on the Hong Kong Stock Exchange. The underlying portfolio totals approximately USD 481.5 million, comprising 42 infrastructure debt obligations across 32 projects in 15 countries and 11 subsectors. Some assets came from the redemption of Bauhinia 1 after its three-year non-call period ended, as HKMC continues the issuance series that began in 2023. Growing demand for mezzanine debt supported the issuance of an unrated Class D tranche, following a Class D tranche rated below investment grade in Bauhinia 3 in 2025. The five-class structure also includes a USD 128.5 million sustainability tranche backed by sustainable, green and social assets under HKMC’s Social, Green and Sustainability Financing Framework. The Asian Infrastructure Investment Bank continued to participate as an anchor investor through its USD 300 million investment program.
Hong Kong Mortgage Corporation completes fourth infrastructure loan-backed securities issuance totaling USD 457.3 million
The Hong Kong Mortgage Corporation has completed Bauhinia 4, its fourth infrastructure loan-backed securities issuance, issuing USD 457.3 million of notes against a portfolio worth approximately USD 481.5 million. The structure includes an unrated Class D tranche and a USD 128.5 million sustainability tranche. Some portfolio assets came from the redemption of Bauhinia 1 after its non-call period ended.