Hong Kong Airport Authority sells record $2.4b of bonds
The Airport Authority of Hong Kong sold HK$18.5b ($2.4b) of bonds in the largest-ever issuance in the financial hub’s local currency, amid a sluggish recovery in the aviation sector and delays to the airport’s expansion plan. The Hong Kong government’s statutory body priced 3-year, 5-year, 10-year and 30-year notes yielding 4.05%, 4.1%, 4.25% and 4.5%, respectively, late Tuesday. The notes received HK$25.3b of bids, all from Asia, according to a person familiar with the matter. The Hong Kong dollar issuance is largest of its kind, surpassing the HK$18b convertible-bond offering by now-liquidated developer China Evergrande Group in 2018, according to Bloomberg-compiled data. Proceeds of the bond will be used for refinancing and funding capital expenditures, including the airport’s three-runway project and general corporate purposes, according to the person. While Hong Kong airport’s three-runway system came into operation at the end of November, there will be little additional flight capacity available for at least another year. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2025-01-08/general/hong-kong-airport-authority-sells-record-2-4b-of-bonds
https://portal.staralliance.com/cms/logo.png
Hong Kong Airport Authority sells record $2.4b of bonds
The Airport Authority of Hong Kong sold HK$18.5b ($2.4b) of bonds in the largest-ever issuance in the financial hub’s local currency, amid a sluggish recovery in the aviation sector and delays to the airport’s expansion plan. The Hong Kong government’s statutory body priced 3-year, 5-year, 10-year and 30-year notes yielding 4.05%, 4.1%, 4.25% and 4.5%, respectively, late Tuesday. The notes received HK$25.3b of bids, all from Asia, according to a person familiar with the matter. The Hong Kong dollar issuance is largest of its kind, surpassing the HK$18b convertible-bond offering by now-liquidated developer China Evergrande Group in 2018, according to Bloomberg-compiled data. Proceeds of the bond will be used for refinancing and funding capital expenditures, including the airport’s three-runway project and general corporate purposes, according to the person. While Hong Kong airport’s three-runway system came into operation at the end of November, there will be little additional flight capacity available for at least another year. <br/>