The Hong Kong Mortgage Corporation Limited (HKMC) on Tuesday announced the issuance of multi-currency public benchmark bonds totaling HK$25.3 billion, equivalent to $3.3 billion, in its largest-ever public bond offering.

The four-tranche landmark issuance under the HKMC’s $30 billion Medium Term Note Programme broke its own record set in October last year when it launched its third social bonds equivalent to HK$23.8 billion, according to the Hong Kong Monetary Authority.

The multi-currency benchmark bond issuance comprises HK$10 billion 2-year, CNH 5 billion 3-year, and $1 billion 5-year bonds in conventional bond format, and a 30-year HK$2 billion bond in social bond format.

Following a series of effective investor roadshows, the bond issuance was book-built and priced in the city on Nov 18.

“This landmark multi-currency bond issuance has further solidified Hong Kong's position as Asia's leading international bond issuance hub and the premier offshore renminbi business center,” said HKMA Deputy Chief Executive and HKMC Executive Director Howard Lee.

The Issuance was well received by a diverse group of high-quality local, Southbound Bond Connect and international institutional investors, with a combined peak orderbook of around HK$80 billion equivalent and final allocation to around 250 accounts, the HKMA said in a statement on Tuesday.

The investors include multilateral development banks, government-related funds, banks, insurance companies, Mandatory Provident Fund (MPF) and pension funds, asset management companies, and private banks, it added.

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“The Issuance further underscored the HKMC's role in fostering the development of public bond market across various currencies and tenors, paving the way for other issuers to better connect with local, Chinese mainland, and overseas investors,” said Lee.

The largest-ever 30-year HKD bond issuance in the city, the 30-year Hong Kong dollar (HKD) social bond tranche is also the first-ever social bond issuance in Asia Pacific, with proceeds being used to support the corporation’s Reverse Mortgage Programme (RMP) that provides essential financing for the elderly in Hong Kong.

The RMP scheme is one of the "HKMC Retire 3" products offering retirement planning solution for elderly homeowners to unlock the values of their properties to provide a supplementary cashflow to help them maintain their quality of life during retirement, and to meet healthcare and other livelihood needs.

As of October, the HKMC has received 8,776 applications – with the average age of borrowers at 69 – under the program with an average property value of around HK$5.5 million and average monthly payout of around HK$15,900.

“This record-breaking bond issuance has proven to be highly effective in bringing new investors to the Hong Kong capital market,” Executive Director and Chief Executive Officer of the HKMC Colin Pou said, adding that it was also a testament to investors' unwavering confidence in Hong Kong and the HKMC.

The first-ever social bond tranche dedicated to reverse mortgage loans not only promoted sustainable financing and financial inclusion for the elderly, “but also made contribution to the development of retirement planning market and silver economy in Hong Kong”, he added.