Cathay raises $2.1b from first HK dollar bond

The proceeds will support working capital needs.

Cathay has priced its first Hong Kong dollar public bond, raising $2.1b from a three-year fixed-rate issuance.

The bond was priced at 3.78%, marking the airline’s first fundraising in the Hong Kong dollar public bond market. Cathay said the issuance also represents the largest Hong Kong dollar public bond by a Hong Kong-based non-public sector company.

The deal attracted demand from professional investors, including asset managers, banks, and private banks.

Cathay intends to use the proceeds for working capital and general corporate purposes. The issuance was made under its US$2.5b Medium Term Note Programme, with an application submitted to list the bonds on The Stock Exchange of Hong Kong.