"Linklaters Advises HKMC on Landmark US$450.5m Infrastructure Loan-Backed Securities Issuance in Hong Kong"

"Linklaters advised The Hong Kong Mortgage Corporation Limited (HKMC) on the issuance of Bauhinia 3, the third and largest infrastructure loan-backed securities (ILBS) offering in Hong Kong, valued at approximately US$450.5m. This issuance introduced several structural innovations, including sustainability tranches, non-investment grade notes, and a diverse portfolio of infrastructure loans and bonds. Bauhinia 3 sets new benchmarks for asset diversity and risk management in Hong Kong's ILBS market, further solidifying Linklaters' expertise in Asia's asset-backed securitisation and infrastructure financing."

Linklaters advised The Hong Kong Mortgage Corporation Limited (HKMC) on the offering of the third infrastructure loan backed securities (ILBS) in Hong Kong, known as "Bauhinia 3," with a total value of approximately US$450.5m. The HKMC acted as collateral manager, sponsor, and retention holder for this issuance. The transaction involved the issuance of five classes of rated notes, with an aggregate principal amount of US$427.9m, executed via a Hong Kong incorporated orphan, bankruptcy-remote, special purpose vehicle. The rated notes are listed on The Hong Kong Stock Exchange. Bauhinia 3 introduced several structural innovations, including the largest sustainability tranche in the Bauhinia ILBS series, the first non-investment grade Class D notes in Asia, and a diverse portfolio comprising infrastructure loans and bonds denominated in non-USD currencies, supported by tailored hedging arrangements to manage interest rate and foreign exchange risks. The Linklaters team was led by Victor Wan, partner and Asia Head of Capital Markets, supported by William Fong and Victoria Lau.

"Linklaters Advises HKMC on Landmark US$450.5m Infrastructure Loan-Backed Securities Issuance in Hong Kong"

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