Airport Authority Hong Kong Issues $211 Million 10 Years Offshore CNY Senior Bond 2.93% Coupon with Expected Hong Kong on 5th June 2024
31st May 2024 | Hong Kong
The Airport Authority Hong Kong (AAHK) has issued a $211 million (CNY 1.5 billion) 10 years offshore CNY senior bond 2.93% coupon, with a Hong Kong Exchange (HKEX) listing expected on 5th June 2024. Airport Authority Hong Kong: “Airport Authority Hong Kong (AAHK) announces that it has successfully priced a CNY1.5 billion senior notes offering (the Notes) in Regulation S format under its U.S.$8,000,000,000 Medium Term Note Programme. The transaction marks AAHK’s debut foray into the offshore Renminbi bond market, which is also the first 10-year offshore Renminbi bond in the public bond market from a Hong Kong corporate issuer. The Notes were well-received by investors including banks, asset managers, private banks and securities firms, with peak orderbook over CNY12.3 billion at final price guidance, representing a peak subscription rate of over 8 times. AAHK successfully raised the amount of financing it targeted and will use the net proceeds from the issue of the Notes for general corporate purposes, including capital injections in its investment projects. AAHK is dedicated to delivering a world-class airport experience and contributing to the growth of the regional and global aviation industry. AAHK believes the issuance can further diversify its funding channel and investor base. The success of the issuance can also foster the development of offshore Renminbi bond market. The Notes are expected to be issued on 5 June 2024, subject to the satisfaction of certain conditions precedent and are expected to be listed on The Stock Exchange of Hong Kong Limited. The Notes are expected to be rated “AA+” by S&P.” The Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers are Bank of China, HSBC and Standard Chartered Bank; and the Joint Bookrunners and Joint Lead Managers are Bank of Communications, Crédit Agricole CIB, DBS Bank Ltd., ICBC and UBS.
“ Airport Authority Hong Kong Issues $211 Million 10 Years Offshore CNY Senior Bond 2.93% Coupon with Expected Hong Kong on 5th June 2024 “
Jack So, Chairman of AAHK: “We are pleased with the overwhelming responses from investors. The successful issuance once again proves the investors’ confidence in the Hong Kong International Airport as a regional and international aviation hub. The Notes also diversified AAHK’s funding sources in the capital market with the most competitive financing costs.”
Summary of investors responses and pricing of the Notes:
| Tenor | 10-year |
| Peak Orderbook | over CNY12.3 billion |
| Peak Subscription Rate | >8x |
| Coupon | 2.93% |
| Basis points below initial price guidance | 47 |
| Allocation | Asia 96%, Europe 4% |
Airport Authority Hong Kong Issues $512 Million 3.5 Years Senior Bond 3.83% Coupon with Hong Kong Listing Expected on 9th January 2024, First HKD Bond Targeting at Public Institutional Bond Market in Hong Kong with Investors Including Sovereign Wealth Funds, Asset Managers, Corporations, Banks & Insurance Companies
4th January 2024 – The Airport Authority Hong Kong (AAHK) has issued a $512 million (HKD 4 billion) 3.5 years senior bond 3.83% coupon with a Hong Kong Exchange (HKEX) listing expected on 9th January 2024 (Tuesday). This is the first Airport Authority Hong Kong (AAHK) HKD bond targeting at public institutional bond market in Hong Kong with investors including sovereign wealth funds, asset managers, corporations, banks & insurance companies. Announcement: “Airport Authority Hong Kong (AAHK) announces that it has successfully priced a HK$4 billion senior notes offering (the Notes) in Regulation S format under its US$8 billion Medium Term Note Programme. This is the first time AAHK taps into the Hong Kong Dollar public institutional bond market. The Notes were well-received by investors including sovereign wealth funds, asset managers, corporations, banks and insurance companies, with orderbook over HK$11billion, representing an oversubscription rate of 2.75 times. AAHK successfully raised the amount of financing it targeted and will use the net proceeds from the issue of the Notes to fund its capital expenditure including capital expenditure of the Three-runway System (3RS) Project and for general corporate purposes, which will enable AAHK to enhance airport infrastructure and improve passenger experience. AAHK is dedicated to delivering a world-class airport experience and contributing to the growth of the regional and global aviation industry. AAHK believes the issuance can further foster the development of Hong Kong’s local bond markets. The Notes are expected to be issued on 9 January 2024, subject to the satisfaction of certain conditions precedent and are expected to be listed on The Stock Exchange of Hong Kong Limited. The Notes are expected to be rated “AA+” by S&P. The Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers are Bank of China, Citigroup, HSBC, Standard Chartered Bank, UBS; and the Joint Bookrunners and Joint Lead Managers are ANZ, BNP PARIBAS, Crédit Agricole CIB, DBS Bank Ltd., Mizuho.” Key data below:
Jack So, Chairman of AAHK: “We are pleased with the overwhelming responses from investors. The issuance diversified AAHK’s funding sources at capital market with the most competitive financing costs.”
| Tenor | 3.5-year |
| Orderbook | over HK$11 billion |
| Oversubscription Rate | 2.75x |
| Coupon | 3.83% |
| Basis points below initial price guidance | 37 |
| Allocation % by regions | Asia 100% |
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