MTR announces massive US$3b public senior notes offering

MTR Corporation (0066) announced it has successfully priced a US$3 billion (HK$23.4 billion) public senior notes offering on Tuesday, marking its largest-ever bond issuance.

The offering saw a final order book of US$13.4 billion, 4.47 times the total issue size, allowing the company to tighten the issue price by 27 to 35 basis points from the initial guidance.

The deal was split into three tranches: a US$500 million 5-year note, a US$1 billion 10-year note, and a US$1.5 billion 30-year note, all issued under the company’s US$15 billion debt issuance program in Regulation S format.

Michael Fitzgerald, MTR Corporation’s finance director, said the strong investor response enabled the company to raise the largest 30-year US dollar bond by a Hong Kong corporation in over two decades. He added that the successful issuance reflects investor confidence in MTR’s operational capabilities and financial strength.

The funds will support future investments in infrastructure development and asset replacement, Fitzgerald said.

The notes are expected to receive an AA+ rating from S&P and Aa3 from Moody’s.

STAFF REPORTER