The Hong Kong Mortgage Corporation (HKMC) has completed a $457.3 million issuance of infrastructure loan-backed securities, its fourth transaction under the Bauhinia programme, as it continues to develop the asset class and attract institutional investors to infrastructure financing.
The latest issuance, known as Bauhinia 4, is backed by a portfolio of 42 infrastructure debt obligations across 32 individual projects in 15 countries and 11 sub-sectors. The underlying assets have a combined value of approximately $481.5 million, HKMC said on Friday.
The transaction comprises five classes of notes: Class A1-SU, Class A1, Class B, Class C, and Class D. The notes, with an aggregate principal amount of $457.3 million, have been listed on the Hong Kong Stock Exchange.
The portfolio includes assets from the redemption of Bauhinia 1, which reached the end of its three-year non-call period.
HKMC also issued an unrated Class D tranche in response to continued investor interest in mezzanine exposure. The additional class allowed the corporation to maintain an efficient capital structure for the transaction.
Sustainability remains a key component of the Bauhinia programme. Bauhinia 4 includes a $128.5 million sustainability tranche, Class A1-SU, backed by sustainable, green, and social assets.
The tranche was issued under HKMC’s Social, Green and Sustainability Financing Framework, which aligns with the Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines published by the International Capital Market Association.
The Asian Infrastructure Investment Bank (AIIB) participated as an anchor investor, continuing its involvement through a $300 million investment programme intended to mobilise private capital into the infrastructure sector.
HKMC said both new and returning investors showed strong interest in the latest issuance. Its investor base included asset managers, corporates, family offices, financial institutions, hedge funds, insurers, pension funds, private banking clients, and securities firms.
The corporation also reported rising interest from bank investors across Asian markets, reflecting broader demand for infrastructure debt exposure.
Bauhinia 4 follows three previous infrastructure loan-backed securities issuances between 2023 and 2025.
Through regular transactions under the programme, HKMC aims to establish infrastructure loan-backed securities as an asset class offering professional investors exposure to diversified project and infrastructure debt across different countries and sectors.
Colin Pou, HKMC’s executive director and chief executive, said the latest transaction demonstrated the corporation’s continued commitment to infrastructure financing and its support for Hong Kong’s ambition to become an infrastructure financing hub.
The issuance was coordinated by Standard Chartered Bank as sole global coordinator. BNP Paribas, China International Capital Corporation Hong Kong Securities, ING Bank’s Singapore branch, MUFG Securities Asia, SMBC Nikko Securities (Hong Kong), and Standard Chartered acted as joint bookrunners.
Fubon Bank (Hong Kong) and Haitong International Securities Group served as co-managers.
