HKIA issues $5b retail bonds at 4.25%

The bonds have a tenor of 2.5 years.

The Hong Kong International Airport (HKIA) has listed its $5b retail bonds due in 2.5 years at 4.25% per annum at the Hong Kong Stock Exchange (HKEX)

The HKIA Retail Bonds recorded 175,178 valid applications for a total of $15,690,820,000 in principal amount.

The HKIA-issued retail bonds are the first listed Hong Kong dollar retail bond issuance by a non-government issuer and the first retail bond issuance by the Airport Authority Hong Kong (AAHK) in over 20 years.

Linklaters, the firm which advised AAHK on the bond issuance, said the agency will use the funds raised from the exercise to fund the capital expenditure, including capital expenditure of the three-runway system project, and for general corporate purposes. 

“The bonds are listed on the Stock Exchange of Hong Kong (HKEX) and cleared through the Central Moneymarkets Unit of the Hong Kong Monetary Authority. There are a total of 19 placing banks and 18 designated securities brokers participating in the issuance,” said the law firm,