Simmons & Simmons Advises Syndicate on HKMC Bauhinia 3 Infrastructure ILBS Issuance

Simmons & Simmons acted as legal counsel to a syndicate of banks in connection with The Hong Kong Mortgage Corporation Limited’s (HKMC) Bauhinia 3 Infrastructure Loan-Backed Securities (ILBS) issuance. The transaction provides professional investors exposure to a diversified infrastructure portfolio comprising 33 loans across 12 countries and nine sub-sectors, with an aggregate portfolio value of approximately US$450.5 million. It comprised five classes of listed notes totalling US$427.9 million, including a US$117 million sustainability tranche backed by green, social and sustainable assets, the largest sustainability tranche in the Bauhinia ILBS series to date. Bauhinia 3 also introduced a mix of infrastructure loans and infrastructure bonds, with several assets denominated in currencies other than USD. The strategic initiative aims to channel long-term capital into infrastructure development and reinforces Hong Kong's role as a regional hub for infrastructure financing. Simmons & Simmons represented the syndicate of banks with a team composed by: Karen Lam (Partner, Head of Hong Kong Securitisation and Derivatives), with key contributions from Shikki Wang (Registered Foreign Lawyer) and Michelle Chitoo (Legal Assistant), and additional international support from Simmons & Simmons' Structured Finance and Derivatives Group in London. The firm advised on legal structuring, due diligence, portfolio asset transfer, hedging arrangements, payment mechanics and multi-jurisdictional regulatory compliance.

Simmons & Simmons Advises Syndicate on HKMC Bauhinia 3 Infrastructure ILBS Issuance

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