HKMC's third infrastructure loan-backed securities issuance
The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Mortgage Corporation Limited (HKMC) announced today (October 17) the successful completion of its third infrastructure loan-backed securities (ILBS) issuance. This is executed through a Hong Kong special purpose vehicle (SPV), Bauhinia ILBS 3 Limited (Bauhinia 3) and it builds on the HKMC's aim of developing the ILBS asset class through regular issuances after successful issuances in 2024 and 2023. The Bauhinia issuances offer professional investors exposure to a diversified portfolio of project and infrastructure debt across multiple geographies and sectors.
The Executive Director and Chief Executive Officer of the HKMC, Mr Colin Pou,said, "It is another successful issuance demonstrating the HKMC's continued commitment to ILBS and the support for the development of Hong Kong as an infrastructure financing hub. The ongoing strong demand from new and existing investors shows that investor interest continues to grow and they increasingly recognise the benefits and diversification this asset class brings."
The Bauhinia 3 issuance received another strong response from investors, both from new and repeated investors, with growing demand from investors outside Asia. The expanded investor base is well diversified, including asset manager, corporate, family office, financial institution, insurer, private banking, and security firm investors.
Asian Infrastructure Investment Bank (AIIB) continued to support the HKMC's ILBS issuance as an anchor investor through its US$300 million investment programme. AIIB's investment programme continues to fulfil its objective to mobilise private capital into the infrastructure sector.
Bauhinia 3 has a portfolio of 33 project and infrastructure loans across 28 individual projects spreading across 12 countries and 9 sub-sectors, with a total value of approximately US$450.5 million. In total, five classes of notes are issued (Class A1-SU, Class A1, Class B, Class C and Class D), with aggregate principal of US$427.9 million. The issued notes are listed on The Hong Kong Stock Exchange. The quality of the portfolio and increasing investor interest in ILBS allowed the HKMC to issue Class D at non-investment grade, the first of its kind in Asia, which further enhanced the efficiency of the capital structure. The HKMC acts as the sponsor, collateral manager and risk retention holder of the transaction.
Within the capital structure of Bauhinia 3, there is an US$117 million sustainability tranche (Class A1-SU) backed by sustainable, green and social assets. Class A1-SU is issued in accordance with the HKMC's Social, Green and Sustainability Financing Framework, which aligns with the Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines released by the International Capital Market Association.
Standard Chartered Bank is the Sole Global Co-ordinator. BNP Paribas, China International Capital Corporation Hong Kong Securities Limited, ING Bank N.V., Singapore Branch, MUFG Securities Asia Limited and Standard Chartered Bank are the Joint Bookrunners. Fubon Bank (Hong Kong) Limited is the Co-Manager.
Source: AI-found images
SITI visits Guangxi
The Secretary for Innovation, Technology and Industry, Professor Sun Dong, visited Nanning in Guangxi today (January 14).
This morning, Professor Sun called on the Secretary of the CPC Guangxi Zhuang Autonomous Region Committee and Director of the Standing Committee of the Guangxi Zhuang Autonomous Regional People's Congress, Mr Chen Gang, and learned that Guangxi is accelerating the high-quality development of artificial intelligence and building an industrial co-operation highland for the AI industry facing the Association of Southeast Asian Nations (ASEAN). They also had exchanges and in-depth discussions on further strengthening the co-operation and synergistic development between Hong Kong and Guangxi in various areas including AI, innovation and technology (I&T) parks, data infrastructure, data governance, and nurturing talent. Member of the Standing Committee of the CPC Guangxi Zhuang Autonomous Region Committee and Vice Chairman of the People's Government of the Autonomous Region Ms Lu Xinning also attended the meeting.
Professor Sun said Hong Kong will fully leverage its distinctive advantage of having strong support from the motherland and a close connection with the world. Through complementary co-operation and synergistic development, Hong Kong and Guangxi will explore co-operation between the two places and with ASEAN countries in industries such as AI and the digital economy.
Professor Sun then met with Member of the Standing Committee of the CPC Guangxi Zhuang Autonomous Region Committee and the Secretary of the CPC Nanning Municipal Committee, Mr Xu Yongguo, to exchange views on I&T co-operation between Hong Kong and Nanning.
Professor Sun visited the Display Center of the China-ASEAN Countries Artificial Intelligence Application Cooperation Center and toured its display hall. The Center is an AI co-operation platform, jointly established by the Guangxi Zhuang Autonomous Region and ASEAN countries, which aims to promote regional co-operation in AI technologies and the digital transformation of industries. The center is also an industrial highland facing ASEAN.
He was briefed on the Center's construction and operation, as well as its co-operation with ASEAN countries. He also observed the AI+ industries and application scenarios, including industrialisation and social governance, and exchanged views on the co-operation model of research and development, integration in Guangxi, and applications in ASEAN.
Professor Sun also visited the exhibition centre of the China-ASEAN Information Harbor and the Beibu Gulf Big Data Exchange Center and studied the collaboration in AI between Guangxi and ASEAN countries, as well as the development and transaction of data products. He also learned about the cross-boundary data flow channels and industrial Internet platforms, the construction of the Digital Silk Road, and co-operation with the ASEAN market.
Professor Sun then visited the China-ASEAN Geographic Information Town to study the industrial applications of technologies, such as satellite navigation and geographic information, in the fields of smart city, cross-boundary logistics, and so on.
Meanwhile, Professor Sun visited the China-ASEAN Mercantile Exchange (China-Singapore Nanning International Logistics Park) to learn about the operation of the large-scale cross-boundary integrated logistics park and one-stop trade platform that integrates functions including production, warehousing, logistics, exhibition, commerce and finance. He also studied the international co-operation between ASEAN countries and Guangxi through the Western New Land-Sea Corridor.
Upon his arrival in Nanning, Guangxi yesterday, Professor Sun immediately met with Deputy Secretary-General of the People's Government of the Guangxi Zhuang Autonomous Region, Party Secretary and Director of the Guangxi Big Data Development Bureau Mr Zhao Zhigang, to have an in-depth exchange on issues including the promotion of data sharing, smart city development, and co-operation in digital industry.
The Chief Executive Officer of Hong Kong Cyberport Management Company Limited, Dr Rocky Cheng, also joined the visit.
Professor Sun will continue his visit tomorrow. He will visit a digital intelligent operations and maintenance service provider and its intelligent computing centre to learn about the service provider's latest achievements in AI and computing power, digital intelligence technology and products. He will also visit the China Mobile Group Guangxi Company to conduct studies on the planning of its infrastructure in computing power and its AI industry large models.
Professor Sun will conclude his visit before noon and return to Hong Kong.
SITI visits Guangxi Source: HKSAR Government Press Releases
SITI visits Guangxi Source: HKSAR Government Press Releases
SITI visits Guangxi Source: HKSAR Government Press Releases
SITI visits Guangxi Source: HKSAR Government Press Releases
SITI visits Guangxi Source: HKSAR Government Press Releases
SITI visits Guangxi Source: HKSAR Government Press Releases
SITI visits Guangxi Source: HKSAR Government Press Releases
SITI visits Guangxi Source: HKSAR Government Press Releases
SITI visits Guangxi Source: HKSAR Government Press Releases
SITI visits Guangxi Source: HKSAR Government Press Releases
SITI visits Guangxi Source: HKSAR Government Press Releases
SITI visits Guangxi Source: HKSAR Government Press Releases
SITI visits Guangxi Source: HKSAR Government Press Releases
SITI visits Guangxi Source: HKSAR Government Press Releases
SITI visits Guangxi Source: HKSAR Government Press Releases
SITI visits Guangxi Source: HKSAR Government Press Releases
SITI visits Guangxi Source: HKSAR Government Press Releases
SITI visits Guangxi Source: HKSAR Government Press Releases
SITI visits Guangxi Source: HKSAR Government Press Releases
SITI visits Guangxi Source: HKSAR Government Press Releases
SITI visits Guangxi Source: HKSAR Government Press Releases
