HKMC Releases Social Bonds Allocation Update and Impact Report 2024

The
Hong
Kong
Mortgage
Corporation
Limited
(HKMC)
has
published
its
Social
Bonds
Allocation
Update
and
Impact
Report
2024,
according
to
the
Hong
Kong
Monetary
Authority.
The
report
provides
a
comprehensive
overview
of
the
allocation
of
net
proceeds
from
two
social
bond
issuances
launched
in
2022
and
2023,
along
with
their
social
impacts
as
of
June
30,
2024.

Key
Allocations
and
Social
Impacts

The
report
reveals
that
the
net
proceeds
from
the
social
bonds
were
primarily
allocated
to
projects
aimed
at
addressing
social
issues
in
Hong
Kong.
These
projects
include
affordable
housing,
healthcare
services,
and
educational
programs,
which
are
designed
to
benefit
underprivileged
communities.

An
Independent
Practitioner’s
Limited
Assurance
Report,
issued
by
PricewaterhouseCoopers,
accompanies
the
HKMC
report.
This
assurance
report
provides
an
additional
layer
of
transparency
and
credibility
to
the
allocation
and
impact
disclosures,
ensuring
that
the
information
presented
meets
stringent
verification
standards.

Background
and
Objectives

The
HKMC’s
social
bond
issuances
are
part
of
a
broader
strategy
to
promote
sustainable
finance
in
Hong
Kong.
These
bonds
are
specifically
designed
to
fund
projects
that
generate
positive
social
outcomes,
aligning
with
global
standards
for
social
impact
investments.
By
providing
detailed
allocation
and
impact
reports,
the
HKMC
aims
to
maintain
high
levels
of
accountability
and
transparency,
thereby
fostering
investor
confidence.

According
to
the
HKMC,
the
social
bonds
have
already
made
significant
strides
in
improving
living
conditions
for
many
residents.
For
instance,
funds
have
been
used
to
construct
affordable
housing
units,
which
have
provided
safe
and
secure
living
environments
for
low-income
families.
Additionally,
investments
in
healthcare
have
facilitated
the
provision
of
essential
medical
services
to
underserved
populations.

Future
Plans
and
Outlook

Looking
ahead,
the
HKMC
plans
to
continue
its
focus
on
sustainable
finance,
with
additional
social
bond
issuances
potentially
in
the
pipeline.
The
organization
is
committed
to
expanding
its
portfolio
of
socially
impactful
projects,
thereby
contributing
to
the
broader
goal
of
sustainable
development
in
Hong
Kong.

In
summary,
the
Social
Bonds
Allocation
Update
and
Impact
Report
2024
not
only
highlights
the
effective
use
of
funds
but
also
underscores
the
HKMC’s
dedication
to
social
responsibility.
As
the
organization
continues
to
prioritize
transparency
and
accountability,
it
sets
a
strong
example
for
other
financial
institutions
aiming
to
make
a
positive
social
impact.

For
more
details,
the
full
report
and
the
Independent
Practitioner’s
Limited
Assurance
Report
can
be
accessed
on
the

Hong
Kong
Monetary
Authority
website.

Image
source:
Shutterstock