THE Airport Authority Hong Kong has raised HK$4 billion ($511.82 million) in a 3.5-year bond that is its first public market Hong Kong dollar bond deal, the statutory body said in statement on Wednesday.
The coupon for the bond was set at 3.83%, compared with the initial price guidance given to potential investors of 4.2%, according to the term sheet that was seen by Reuters and an earlier term sheet sent by the deal's bookrunners.
Hong Kong's airport authority, which operates the city's main airport, typically issues U.S. dollar bonds at the start of each calendar year.
Bankers on the transaction said the statutory body decided to issue Hong Kong dollar bonds because it was cheaper than U.S. dollar bonds given the current market conditions and that the deal size was smaller than normal.
The airport authority raised $3 billion in dollar bonds last year and $4 billion in 2022.
Investors bid for HK$11.1 billion worth of bonds in the latest offering which launched on Tuesday, according to the term sheet, which meant the deal was nearly three times oversubscribed.
Banks accounted for 53% of the buyers, while fund managers and insurance firms picked up 20%, the term sheet showed.
The airport authority intends to use the money raised on its capital expenditure programme, which centres on the development of the airport's third runway. - Reuters
