Clifford Chance

Clifford Chance advises HKMC on its triple-tranche issuance of HK$12 billion benchmark bonds

Global law firm Clifford Chance has advised The Hong Kong Mortgage Corporation Limited (HKMC) on the triple-tranche issuance of Hong Kong dollar (HKD) denominated benchmark bonds totalling HK$12 billion (approximately US$ 1.5 billion) under its US$30 billion Medium Term Note Programme. The transaction is the largest-ever Hong Kong dollar-denominated senior unsecured public bond transaction and the largest 10-year Hong Kong dollar-denominated public bond issuance in the institutional market.

The triple-tranche issuance comprises HK$8 billion two-year, HK$3 billion five-year and HK$1 billion 10-year bonds. The net proceeds of the notes issued will be used to meet general financing requirements.

Lead partner Mark Chan said, "We are delighted to advise HKMC on this landmark transaction, which is a testament to the robustness and dynamism of Hong Kong's financial markets. This record-setting HK$12 billion bond issuance underscores HKMC's pivotal role in the development of the local bond market and investors' confidence in Hong Kong's economy. This transaction reflects our team's deep expertise in debt capital markets and strong track record with public sector issuances."

Mark was supported by senior associate George Mok and associate Christine Chan.

HKMC is a company wholly owned by the Hong Kong SAR Government through the Exchange Fund.

This transaction builds on Clifford Chance's track record on debt capital markets issuances by the public sector. The firm previously advised on HKMC's inaugural dual-tranche social bonds and Hong Kong's first infrastructure-backed CLO sponsored by HKMC.