The Hong Kong Mortgage Corporation has issued its first social bond to raise more than HK$11 billion.
This marks the world's first social bond issuance in dual-tranche denominated in Hong Kong dollars and offshore yuan, HKMC said in a statement yesterday.
The dual-tranche issuance comprises HK$8 billion worth of two-year social bonds and 3 billion yuan (HK$3.22 billion) worth of three-year social bonds.
Despite recent market volatility, the issuance was well-received by a diverse group of local and overseas institutional investors with the participation of over 100 organizations, including banks, investment funds, insurance firms, central bank and government-related funds, HKMC said.
A social bond is a conventional bond where the proceeds will be exclusively applied to finance eligible social projects or loans that create a positive social impact for a targeted population.
The net proceeds from the issuance will mainly be used to finance or refinance loans under a guarantee scheme for small and medium-sized enterprises, HKMC said.
The Special 100 percent Loan Guarantee was launched in April 2020 to alleviate the cash flow pressure of SMEs in Hong Kong during the Covid pandemic. The program has benefited more than 33,000 local SMEs and 350,000 related employees up to early October 2022.
Elsewhere, Hong Kong Exchanges and Clearing (0388) said it expects to continue reaching out to companies in the Middle East after Financial Secretary Paul Chan Mo-po said the bourse could assist the world's biggest oil giant Aramco to go public in Hong Kong if the company is interested.
HKMC says the issuance was well-received. Sing Tao
