The Hong Kong Mortgage Corp (HKMC) - the largest domestic bond issuer - plans to sell as much as HK$17 billion in bonds and mortgage-backed securities this year.
The proceeds will be used to fund its purchase of HK$15 billion in mortgages.
Chief executive Peter Pang Sing-tong said HKMC would issue HK$11 billion in bonds this year. Between HK$1 billion and HK$3 billion will be earmarked for retail investors and the remainder will be sold to institutions.
It also plans to issue between HK$4 billion and HK$6 billion in mortgage-backed securities.
Last year, the HKMC made 45 issues of bonds, raising HK$15 billion - HK$5.5 billion of which was bought by retail investors.
The HKMC, fully owned by the government, buys mortgages from banks and the Hong Kong Housing Authority and repackages them into mortgage-backed securities, which it then sells to investors.
Mr Pang said the HKMC last year posted a net profit of HK$263.8 million - up 20.5 per cent from 2001 as higher mortgage purchases boosted interest income.