Hong Kong, China: Project Ocean

approved

The Project will mobilize private capital into emerging market infrastructure through supporting the continued development of the infrastructure asset backed securities market in Asia. This will be achieved through an up to USD300 million investment program into issuances of infrastructure asset backed securities sponsored by the Hong Kong Mortgage Corporation (HKMC). Incorporated in 1997, HKMC is wholly owned by the Government of the Hong Kong Special Administrative Region of the People's Republic of China (HKSAR Government). The Infrastructure Financing and Securitization (IFS) Division of HKMC was formed in 2019 to execute the purchase, warehousing, and securitization of infrastructure loans. As part of the Project, IFS will develop a climate strategy for its securitization business that is in alignment with the goals of the Paris Agreement and decarbonize its portfolio in future infrastructure asset backed securities issuances. The Project will contribute to the track record of primary issuances and provide valuable market benchmarks, which are both key conditions for developing the infrastructure securitization market in Asia. This will result in the creation of a robust ecosystem for development of the Asian infrastructure asset class, mobilize inbound investment by institutional investors, and set new precedents for capital markets development in the region.