HKMC, five banks sign MOU on infrastructure loans framework

The MOU will set out the principal terms for potential infrastructure loan cooperation.

The Hong Kong Mortgage Corporation Limited (HKMC) has signed a Memoranda of Understanding (MOU) on infrastructure loans framework with five partner banks.

The five banks are Crédit Agricole Corporate and Investment Bank, HSBC, ING Bank, Natixis SA, and Standard Chartered Bank.

The MOU will set out the principal terms for potential infrastructure loan cooperation between the HKMC and the partner banks on both primary participation and secondary sale bases, including the loan selection criteria, mode of participation, and engagement process.

Under the MOU, partner banks could assist in identifying infrastructure-related loan assets for the HKMC, and would further the mandates of the HKMC's Infrastructure Financing and Securitisation business to fill the infrastructure financing market gaps and to consolidate Hong Kong's position as an infrastructure financing hub.

“The MOUs enhance the collaboration between HKMC and a list of highly experienced and professional market players in the infrastructure financing arena. The steady and high quality infrastructure financing deal flows presented by these partner banks is conducive to HKMC's business objective of infrastructure loan securitisation after accumulating a diversified and sizeable asset portfolio," HKMC CEO Raymond Li said.