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Today: Jun 13, 2024

Hong Kong airport secures $500M+ in groundbreaking local-currency bond sale.

1 min read

Hong Kong International Airport has raised more than $500 million in its first local-currency bond offering. The funds will be used to finance capital expenditures, including the construction of a third runway. The bond was priced at a coupon rate of 3.83%, lower than the initial guidance of 4.2%. The offering received strong demand from a range of investors, indicating confidence in the airport’s business outlook and the local bond market. This diversification of funding sources is part of a broader strategy by the Airport Authority Hong Kong. The airport’s passenger traffic has been recovering strongly and is expected to reach pre-pandemic levels by the end of the year. Banks, fund managers, and insurance companies were the main participants in the bond offering, with Bank of China, Citigroup, HSBC, Standard Chartered, and UBS serving as joint coordinators.