The Hong Kong Mortgage Corporation (HKMC) issued its second infrastructure loan-backed securities (ILBS) issuance, Bauhinia 2, raising $107 million in its sustainability tranche.

Its sustainability tranche is backed by sustainable, green and social assets, which HKMC says reinforces its dedication to financing green, social, and sustainable infrastructure projects

Green assets in the issuance cover renewable energy projects focused on solar and wind technologies, while the social assets are dedicated to initiatives that look to improve access to education and enhance digital communication.

The transaction attracted a diverse investor base, including insurers, pension funds, and financial institutions, which HKMC argues reflects a growing confidence in infrastructure backed securities.

The total portfolio for Bauhinia 2 is comprised of 28 project and infrastructure loans across 26 individual projects and totals approximately $423.3 million. It builds on Bauhinia 1, which raised $404.9 million in 2023.