Clifford Chance

Clifford Chance advises HKMC on inaugural dual-tranche social bonds

Leading international law firm Clifford Chance has advised The Hong Kong Mortgage Corporation Limited (HKMC) on the dual-tranche issuance of its inaugural social bonds comprising a series of HK$8 billion 5.00 per cent. notes due 2024 and a series of offshore Renminbi (CNH) 3 billion 3.40 per cent. notes due 2025. This transaction is the world’s first dual-tranche social bond issuance denominated in Hong Kong dollar and offshore Renminbi.

The social bonds, issued under HKMC's US$30 billion medium term note programme, are part of HKMC’s new Social, Green and Sustainability Financing Framework. Global coordinators, bookrunners and lead managers were Crédit Agricole, HSBC and Standard Chartered.

Commenting on the transaction, lead partner Mark Chan said, “We are proud to bring our leading capital markets expertise to advise on the world’s first dual-tranche social bond issuance denominated in HK-dollar and offshore Renminbi. This landmark transaction showcases continued strong support for ESG financing as investor demand in the ESG space evolves and matures exponentially.”

Mark was supported by associates George Mok and Christine Chan.

The firm has a track record of advising on landmark debt issuances including Vena Energy’s inaugural green project bond in Japan, Lenovo’s inaugural offering of green bonds, New World Development’s dual tranche green perpetual bond and social bond and the world’s largest retail green bond issuance by the HK SAR Government.