Debt

Apac's largest social bond issuance will be used to finance or refinance the loans under the special 100% loan guarantee of Hong Kong's SME Financing Guarantee Scheme.

China is shifting towards manufacturing abroad as opposed to natural resources; on the other hand, Chinese overseas lending has weakened due to domestic economic concerns.

The bank expects to see increasing demand for digital bonds from the private sector.

The strategy has raised $120m of seed capital and will focus on the climate transition, initially targeting Australia, Singapore, South Korea, Japan, Hong Kong, the UK and Canada.

The loan includes a HK$3bn social component and will help with plans to build 17,000 subsidised housing units in the Special Administrative Region over the next five years.

The Asian Infrastructure Investment Bank is an anchor investor in SPV Bauhinia 2, which contains a $107m sustainability tranche; meanwhile, the Hong Kong Mortgage Corporation will have a new CEO in December.

The Credit Suisse crisis shows that the bonds don't necessarily provide stability to banks and investors as designed; APRA has proposed a different capital framework from January 1, 2027.

Mangla, previously at JP Morgan for over 20 years, joins as head of financing for investment banking, from September 4.

The transaction is one of the largest HKD-denominated issuances to date; however, the SAR's property market is tough, with giant New World Development set to announce its first loss in 20 years.