URA $12b bonds oversubscribed two times

The proceeds will fund its capital on urban renewal projects.

The Hong Kong Urban Renewal Authority’s (URA) $12b issuance of senior bonds was oversubscribed two times over, with the order book reaching more than $22.8b.
 
It comprises bonds worth $4b with a three-year tenor, $5b with a five-year tenor, and $3b with a 10-year tenor, the authority said.

It was also the authority’s first issuance in the Hong Kong dollar public institutional bond market since 2009. With a coupon rate of between 3.35% to 3.55%, the yields on these bonds are the lowest in the HKD public offering market in the past two and a half years.

The offer drew an overwhelming response from local and overseas investors including banks, asset managers, corporations, insurance companies, hedge funds, and official institutions.

URA said the proceeds from the offering will fund its capital expenditure on urban renewal projects and for general corporate purposes.