Fourth Bauhinia issuance places $457.3 million in notes
Hong Kong Mortgage Corporation Limited (HKMC) completed its fourth infrastructure loan-backed securities issuance, Bauhinia 4. It placed $457.3 million in notes against a portfolio worth approximately $481.5 million.
42 obligations across 15 countries
Completed on October 30, 2026, Bauhinia 4 holds 42 debt obligations across 32 projects, 15 countries and 11 sub-sectors.
It follows three issuances in 2023-2025 and includes assets from Bauhinia 1's redemption after its 3-year non-call period.
Five classes trade on the Hong Kong Stock Exchange: A1-SU, A1, B, C and unrated D. The $128.5 million A1-SU sustainability tranche funds sustainable, green and social assets under HKMC's Social, Green and Sustainability Financing Framework, following International Capital Market Association principles and guidelines.
Asian Infrastructure Investment Bank (AIIB) remains an anchor investor through its $300 million investment program.
HKMC serves as sponsor, collateral manager and risk retention holder; Class D responds to mezzanine demand.
Nine firms arrange the transaction
Standard Chartered Bank is sole global coordinator and a joint bookrunner alongside BNP Paribas, China International Capital Corporation Hong Kong Securities Limited, ING Bank N.V., Singapore Branch, MUFG Securities Asia Limited and SMBC Nikko Securities (Hong Kong) Limited.
Fubon Bank (Hong Kong) Limited and Haitong International Securities Group Limited are co-managers.
Buyers include asset managers, corporates, family offices, financial institutions, hedge funds, insurers, pension funds, private banks and securities firms.
HKMC also reports rising appetite among Asian banks.
Private capital remains the objective
HKMC Executive Director and Chief Executive Officer Colin Pou said the transaction supports Hong Kong's development as an infrastructure financing hub.
He attributed demand to growing recognition of infrastructure assets.
AIIB's program aims to mobilize private capital into infrastructure.