Linklaters advises on the IFC’s first-of-its-kind Hong Kong dollar social bonds issuance

Linklaters advised the joint lead managers on the inaugural benchmark public bond denominated in Hong Kong dollar by the International Finance Corporation (IFC), a member of the World Bank Group. The three-year HK$5bn (approximately US$650m) offering marked the first Hong Kong dollar denominated social bond issued in a public format, and the largest issuance denominated in Hong Kong dollar by a supranational.

The bonds have been admitted to trading on the Main Market of the London Stock Exchange and the Singapore Exchange Securities Trading Limited, and were settled through the Central Moneymarkets Unit operated by the Hong Kong Monetary Authority. 

The social bond was issued under the issuer's social bond framework, which is in full alignment with the International Capital Market Association’s Social Bond Principles. Proceeds from IFC’s social bonds fund a diverse range of social projects which include affordable basic infrastructure, access to essential services, affordable housing, women-owned small and medium sized businesses who lack access to finance, and companies that incorporate people at the "base of the economic pyramid" into their value chain; as well as food security.

The Linklaters cross-jurisdictional capital markets team was led by London-based partner Elaine Keats and Hong Kong SAR-based partner Terence Lau, supported by London-based managing associate Sirae Chen.

Linklaters’ capital markets partner Elaine Keats commented:

“We were delighted to support this landmark bond issuance in support of IFC’s commitment to advancing social causes. The pivotal transaction not only highlights our expertise in our sovereign and supranational bond work, but also underscores the strengths of Linklaters’ global platform in delivering complex and cross-border financings.”

Capital markets partner Terence Lau added:

“We’re thrilled to be able to support the IFC on its first ever Hong Kong dollar bond offering. The successful issuance underscores the unique role of Hong Kong and the opportunities for further growth of the Hong Kong dollar bond market.”

Linklaters’ Capital Markets team remains at the forefront of the market advising sovereign and supranational issuers on the most innovative transactions, particularly in connection with sustainability related initiatives. We recently advised the European Investment Bank’s record-breaking €3bn European Green Bond, the World Bank’s first-of-its-kind carbon removal bond to fund Amazon reforestation, Saudi Arabia’s first Euro green bond, and the PRC government’s first RMB green bond issuances.