Joerg Hiller
Nov 25, 2025 07:36
The Hong Kong Mortgage Corporation Limited sets a new benchmark with its HK$25.3 billion public bond issuance, marking the largest in its history.
The Hong Kong Mortgage Corporation Limited (HKMC) has achieved a milestone with the successful issuance of multi-currency public benchmark bonds totaling HK$25.3 billion, equivalent to approximately US$3.3 billion. This landmark transaction, conducted under the HKMC’s US$30 billion Medium Term Note Programme, represents the largest public bond offering in the corporation’s history, surpassing its previous record set in October 2024, according to the Hong Kong Monetary Authority.
Details of the Bond Issuance
The issuance, which was book-built and priced on November 18, 2025, includes four tranches: HK$10 billion in 2-year bonds, CNH 5 billion in 3-year bonds, US$1 billion in 5-year bonds, and a 30-year HK$2 billion social bond. The 30-year Hong Kong dollar social bond is notably the largest-ever of its kind in Hong Kong and marks the first social bond issuance in the Asia-Pacific region aimed at supporting the HKMC’s Reverse Mortgage Programme (RMP).
The bond issuance attracted a diverse range of high-quality investors, including multilateral development banks, government-related funds, banks, insurance companies, and private banks, amassing a peak order book of around HK$80 billion. Approximately 250 accounts were allocated in the final distribution.
Supporting the Elderly through Social Bonds
The proceeds from the 30-year social bond tranche are designated to support the RMP, part of the HKMC’s “Retire 3” products. This initiative provides a retirement planning solution for elderly homeowners, allowing them to leverage their property value for supplementary cash flow. As of October 2025, the programme had received 8,776 applications, with an average property value of HK$5.5 million and an average monthly payout of HK$15,900. The average age of participants was 69 years.
Market Impact and Future Prospects
Howard Lee, Deputy Chief Executive of the Hong Kong Monetary Authority, emphasized the issuance’s role in reinforcing Hong Kong’s status as a leading international bond issuance hub and offshore Renminbi business center. Colin Pou, Executive Director and CEO of the HKMC, highlighted the transaction’s success in attracting new investors to the Hong Kong capital market and its contribution to promoting sustainable financing and financial inclusion for the elderly.
The HKMC acknowledges the critical support from 29 local and international financial institutions, which acted as Joint Global Coordinators, Bookrunners, Lead Managers, and Structuring Banks. The social bond tranche was issued under the HKMC’s Social, Green, and Sustainability Financing Framework, further details of which can be found on their official website.
Image source: Shutterstock
