ING closes $404.8m infrastructure securities for the Hong Kong Mortgage Corp

ING also acted as the sole finance adviser for the issuance's sustainable tranche.

ING has closed the $404.8m inaugural infrastructure loan-backed securities (ILBS) issuance, named the Bauhinia ILBS 1 Limited (Bauhinia 1), for the Hong Kong Mortgage Corporation (HKMC).

ING acted as joint global coordinator, joint bookrunner, and joint lead manager for the issuance, which involved five classes of notes, including a dedicated sustainability tranche for which ING acted as the sole sustainable finance adviser.

Bauhinia 1 is backed by a diversified pool of 35 infrastructure and project finance loans across various sectors and geographies, ING said in a press release.

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The issuance also made use of a pre-issuance impact report that quantifies the environmental and social benefits associated with the relevant projects. ING said that it advanced the timeline of the report to enable prospective investors to evaluate the broader environmental and social impact of their investments. 

“This is a first-of-its-kind transaction for HKMC, and ING is delighted to assist by providing its market-leading expertise in the infrastructure securitisation space,” said Anju Abrol, CEO and head of wholesale banking, ING APAC.

“As the first public securitisation in Hong Kong since the Covid-19 pandemic, the transaction will strengthen the local securitisation markets, and will see HKMC join a select group of infrastructure securitisation issuers globally,” Abrol said.