HKMC signs MoUs with 14 partner banks on infrastructure loans framework

The following is issued on behalf of the Hong Kong Monetary Authority: 

     The Hong Kong Mortgage Corporation Limited (HKMC) announced today (February 11) the signing of a Memorandum of Understanding (MoU) on infrastructure loans framework with each of the 14 partner banks, namely Australia and New Zealand Banking Group, Bank of China (Hong Kong), BNP Paribas, China Construction Bank (Asia), Citibank, N.A., DBS Bank, Industrial and Commercial Bank of China (Asia), J.P. Morgan Securities (Asia Pacific), Mizuho Bank, National Australia Bank, Oversea-Chinese Banking Corporation, Banco Santander, S.A., Societe Generale, and Sumitomo Mitsui Banking Corporation.

     Similar to the MoUs that the HKMC signed previously with six other partner banks, these MoUs set out the principal terms for potential infrastructure loan cooperation between the HKMC and the partner banks on both primary participation and secondary sale bases, including the loan selection criteria, mode of participation and engagement process.

     The MoUs could assist the partner banks in identifying infrastructure-related loan assets for the HKMC, and would further the mandates of the HKMC's Infrastructure Financing and Securitisation business to fill the infrastructure financing market gaps while consolidating Hong Kong's position as an infrastructure financing hub. Co-operation with a larger number of banks would further enhance infrastructure financing deal flows for the HKMC which is conducive to the HKMC's objective of infrastructure loan securitisation or other forms of asset monetisation or recycling strategies.

     The Executive Director and Chief Executive Officer of the HKMC, Mr Raymond Li, said, "This is yet another milestone for the HKMC. The MoUs with these additional 14 banks signify wider market acceptance of the HKMC in the global infrastructure financing space and further strengthen our existing platform for collaboration between the HKMC and established players."

Ends/Friday, February 11, 2022
Issued at HKT 15:55