As part of the deal, partner banks will identify infrastructure-related lending assets for HKMC and advance the mission of HKMC’s infrastructure finance and securitization activities, he said.
The MoU defines the loan selection criteria, the participation model and the engagement procedures between HKMC and its partner banks in accordance with A declaration.
Financial expert Kanyi Lui of Pinsent Masons, the law firm behind Out-Law, said, “As the World Bank noted, emerging economies currently have an annual infrastructure deficit of $ 1.3 trillion. Bridging this gap in a sustainable way is the challenge of our generation. This MOU and the recently concluded MOU between HKMC and Sinosure pave the way for increased collaboration and coordination in infrastructure financing. HKMC’s expertise in loan securitization and the portfolio of high-quality infrastructure loan assets that these banks and Sinosure can provide are highly complementary and are expected to provide additional liquidity for international infrastructure finance.
The five banks are Crédit Agricole Corporate and Investment Bank, HSBC, ING Bank, Natixis SA and Standard Chartered Bank.
HKMC was established in 1997 and is owned by the Hong Kong Special Administrative Region (HKSAR) government through the Exchange Fund. It started its infrastructure financing and securitization activity in 2019.