Skip to main content

Clifford Chance

Clifford Chance
News and awards

News and awards

Clifford Chance advises on Hong Kong's first infrastructure-backed CLO sponsored by HKMC

8 June 2023

Clifford Chance advises on Hong Kong's first infrastructure-backed CLO sponsored by HKMC

Leading international law firm Clifford Chance has advised ING, MUFG and Standard Chartered Bank as joint global coordinators, joint bookrunners and joint lead managers on Bauhinia ILBS 1 Limited's US$404.8 million pilot project finance and corporate infrastructure collateralised loan obligation (CLO) cash flow securitisation transaction, sponsored by The Hong Kong Mortgage Corporation Limited (HKMC).

The transaction marks the first infrastructure loan backed CLO sponsored by HKMC, the first issued out of Hong Kong by a Hong Kong incorporated orphan special purpose vehicle, and the first such transaction listed on the Hong Kong Stock Exchange. The transaction also includes a sustainability tranche backed by eligible loans under HKMC's Social, Green and Sustainability Financing Framework.

Clifford Chance advised the joint global coordinators on all aspects of the transaction, from inception to completion, which included advising on English, Hong Kong and US securities law.

The project involved a multi-disciplinary team led by Hong Kong based partners Francis Edwards and Dauwood Malik and Foreign Legal Counsel Lin Lu with expertise in securitisation, capital markets and project financing, with support from associate Greg Chan as well as partners and lawyers from our global network.

A separate Clifford Chance team led by London-based partner Bruce Kahl with support from senior associate Andrew Whelan and associate Micah McDonald advised DB Trustees (Hong Kong) Limited as the trustee.

Francis Edwards who led the transaction said, "We'd like to congratulate HKMC, ING, MUFG and Standard Chartered Bank on this landmark transaction. We are proud to support HKMC's pilot project finance and infrastructure CLO in Hong Kong which mobilises institutional capital to finance infrastructure projects across various host countries, helps HKMC recycle capital for such projects and consolidates the vital role of Hong Kong as an infrastructure financing and securitisation hub and international financial centre."

This is the very first infrastructure-backed securitisation transaction in Hong Kong. The Hong Kong-originated CLO has a material international impact, especially as infrastructure CLOs are a relatively new asset class and a developing product globally. The portfolio in this particular transaction initially comprises 35 project finance and corporate infrastructure loans in respect of 25 projects which are located across 12 countries in Asia-Pacific, the Middle East, and South America and diversified across 9 industry subsectors.

HKMC is a company wholly owned by The Government of the Hong Kong Special Administrative Region of the People's Republic of China (Hong Kong Government) through the Exchange Fund.

This transaction won a number of awards at the FinanceAsia Achievement Awards 2023 including Best Bond Deal, Best Infrastructure Deal and Best Structured Finance Deal in Hong Kong SAR. It was also featured as "Deal of the Month" by FinanceAsia.
 

高伟绅助力按揭证券公司在香港特别行政区发行首批基建贷款抵押证券

国际领先律师事务所高伟绅就香港按揭证券有限公司通过特殊目的公司Bauhinia ILBS 1 Limited 发行4.048亿美元的项目融资和公司基建担保抵押债券(CLO)的现金流证券化交易为联席全球协调行、联席簿记行和联席牵头行ING银行、三菱日联证券亚洲及渣打银行提供法律服务。

本交易是香港按揭证券有限公司首批基建贷款支持证券交易,首次通过在香港特别行政区(香港)设立的特殊目的公司发行,且首次在香港联交所上市。本次发行的资本结构中还包括1亿美元的可持续融资票据,由可持续发展、绿色和社会责任元素资产组成,在香港按揭证券公司的《社会责任、绿色及可持续金融框架》下发行。

高伟绅在本交易中为联席全球协调行提供了全方位法律服务,包括提供英国、中国香港特别行政区和美国证券法方面的法律服务。

高伟绅香港办公室合伙人Francis Edwards和Dauwood Malik以及外国法律顾问律师 (澳洲新南威尔士) 鹿麟带领一支集合资产证券化、资本市场和项目融资领域专长的综合团队为联席全球协调行提供法律服务,团队成员还包括香港办公室陈冠强以及高伟绅全球网络的多名合伙人和律师。

高伟绅伦敦办公室合伙人Bruce Kahl牵头的团队为信托人德意志信托(香港)有限公司提供了法律服务,团队成员包括Andrew Whelan和Micah McDonald。

牵头负责本项交易的合伙人Francis Edwards表示:祝贺香港按揭证券有限公司、ING银行、三菱日联证券亚洲及渣打银行成功完成本项具有里程碑意义的交易。我们非常高兴能够为香港按揭证券有限公司在香港的首个项目融资和基建贷款抵押证券交易提供法律服务。本交易将促进机构资本为不同国家的基建项目提供融资,协助香港按揭证券有限公司对上述项目的资金进行再循环,并巩固香港作为基建融资和资产证券化中心以及国际金融中心的重要角色。

本交易是香港首个基建支持证券化交易。由于基建CLO在全球范围内是一项相对新型的资产类别和不断发展的产品,本次香港主导的基建CLO具有重大国际影响。本交易的资产组合包括涉及亚太地区、中东地区和南美地区12个国家、9个行业、25个项目和35笔项目融资和公司基建贷款。

香港按揭证券有限公司是中华人民共和国香港特别行政区政府通过外汇基金全资拥有的公司。