Hong Kong Mortgage, MUFG define framework for infrastructure loan transactions

The Hong Kong Mortgage Corp. Ltd., or HKMC, and Mitsubishi UFJ Financial Group Inc. agreed to establish principal terms for potential infrastructure loan transactions with the signing of a memorandum of understanding Jan. 26.

The agreed framework covers the loan selection criteria as well as the engagement process for the sale of infrastructure loans by the Tokyo-based bank to the government-owned mortgage financing services provider.

The deal marks HKMC's first MoU with a commercial bank and expands the mandates of its infrastructure financing and securitization business to fill any gaps in the market and cement Hong Kong's status as an infrastructure financing hub, according to a Jan. 26 news release by the Hong Kong Monetary Authority.