Hong Kong Airport debuts local currency bond of HK$4b

The Airport Authority Hong Kong is offering its first-ever local currency public bond, pricing a HK$4b ($512m) debt deal as passenger traffic recovers at the financial hub. The 3.5-year bond is priced late Tuesday to yield 3.83%, according to a person familiar with the matter. The proceeds will be used for the airport’s capital expenditure, including plans for its third runway project and general corporate purposes, said the person, who asked not to be identified because they’re not authorized to discuss it. The airport operator received orders over HK$11.1b from 57 accounts, the person said. Its last bond offering was a year ago, when it marketed a $3b four-part debt deal, including a five-year green note of $1b. Hong Kong’s airport passenger traffic has recovered to about 80% of the pre-pandemic level, the airport authority said in a statement on Dec. 27. Passenger traffic at the airport is expected to fully recover to the pre-pandemic level by the end of 2024, it said.<br/>