URA successfully prices two bonds totaling $8 billion

The Urban Renewal Authority (URA) has successfully priced two bonds totaling HK$8 billion under its medium term note program, receiving a positive response from the market.

One tranche is a 5-year bond with a coupon rate of 2.95 percent, with an issuance amount of HK$5 billion, another is a 10-year bond with a coupon rate of 3.48 percent, with an issuance amount of HK$3 billion.

The URA noted that the bonds attracted a diverse range of high-quality local and international investors, with the combined order book peaking at over HK$25 billion, reflecting an oversubscription rate of approximately three times.

The proceeds from the offering will primarily be used to fund capital expenditure on urban renewal projects, according to the URA.

Standard Chartered Bank (Hong Kong), one of the participants of this offering, noted that compared to the first URA Hong Kong dollar public bond transaction in 2024, the numbers of final investors, peak subscription amounts were higher, and coupon rates were lower this time.