The HKMC’s funding requirement mainly comes from asset purchase and refinancing. The HKMC raises funds via bond issuance in institutional and retail markets.
The HKMC is committed to developing the local debt market through regular debt issuances and the introduction of new debt products. As one of the most active bond issuers in Hong Kong, the HKMC will continue to issue debt in both local institutional and retail markets, and diversify its funding sources and investor base to overseas institutional markets. This will not only help broaden the HKMC’s funding base, but also provide investors with high quality debt instruments to satisfy their need for portfolio diversification and yield enhancement.
With its strong credit rating, the HKMC’s debt issues are well received by the investment community, such as pension funds, insurance companies, investment funds, charities, government-related funds and retail investors.
Debt Issuance Programmes
The HKMC has three debt issuance programmes,
which allow the issuance of debt securities in an efficient and effective manner:
Please refer to the Outstanding Debt Securities Statistics for up-do-date figures of
the outstanding balance of the HKMC’s debt securities
|US$3 billion Bauhinia Mortgage-Backed Securitisation Programme|
This mortgage-backed securitisation programme permits the HKMC to originate MBS in both the local and international markets
|Cash and Debt Investment Portfolio||This portfolio comprises mainly cash and bank deposits, commercial paper, high-quality certificates of deposit, and notes that are readily convertible into cash|
|Money Market Lines|
The HKMC has procured money market lines from a large number of local and international banks for short-term financing
|HK$30 billion Revolving Credit Facility||The Exchange Fund commits to providing the HKMC with HK$30 billion in revolving credit|