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Hong Kong airport operator’s first offshore yuan bond raises US$207 million with 8 times oversubscription rate
- Airport Authority Hong Kong’s debut offshore yuan bond rated AA+ by S&P
- The issuance diversifies the authority’s funding sources in the capital market with the most competitive financing costs, chairman says
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Hong Kong’s airport operator has debuted in the offshore yuan bond market, raising a 1.5 billion yuan (US$207 million) senior offering after receiving a strong investor response.
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The transaction is the first 10-year offshore yuan bond, or “dim sum” bond, from a Hong Kong corporate issuer in the public bond market, Airport Authority Hong Kong (AAHK) said on Thursday.
The order book reached a peak of 12.3 billion yuan, marking an oversubscription rate of more than eight times. The 2.93 per cent coupon was tightened from the initial 3.4 per cent.
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Asian investors were allocated 96 per cent of the bond, which was rated AA+ by S&P, while the rest went to European investors. They included banks, asset managers, private banks and securities firms.
“The successful issuance once again proves the investors’ confidence in the Hong Kong International Airport as a regional and international aviation hub,” said Jack So, AAHK’s chairman. “The notes also diversified AAHK’s funding sources in the capital market with the most competitive financing costs.”
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