MTR Corporation (0066) has priced its HK$18.8 billion corporate green bonds, marking its inaugural local dollar public bond issuance and the largest bond transaction in the Hong Kong dollar market.
The combined order book reached over HK$60 billion at its peak, representing over 3 times the total issue size, the railway service provider said in a statement.
This transaction further strengthens MTR’s financial flexibility and expands its diversified funding sources, supporting its long-term sustainability objectives and ongoing infrastructure development for the SAR, it said.
Rated “AA+” by Standard & Poor’s and “Aa3” by Moody’s, the over HK$8.3 billion 5-year tranche, HK$7.5 billion 10-year tranche, and HK$3 billion 30-year tranche were priced with coupons of 2.88 percent, 3.30 percent, and 4.00 percent, respectively.
Proceeds from the issuance will be used to support eligible green investments as defined in the MTR’s sustainable finance framework, it said.
The bonds were issued under the corporation’s US$25 billion (HK$195 billion) medium-term notes program in Hong Kong dollar format.
Bank of China (3988), Crédit Agricole CIB, HSBC (0005), Standard Chartered Bank, and UBS acted as a joint global coordinator, joint bookrunner, and joint lead manager for the issuance.
