Airport Authority in rare HK dollar, bond offerings

Reuters and Gordon Yang

The Hong Kong Airport Authority is aiming to raise up to HK$22 billion in local dollar bond offering and up to four billion yuan (HK$4.25 billion) in another issue, according to two sources with direct knowledge of the matter.

The operator of Hong Kong airport is planning for the deal to be made up of three-, five-, 10- and 30-year issues for the Hong Kong dollar bonds and 10- and 30-year offers for the yuan bonds, according to a term sheet reviewed by Reuters yesterday.

The size of the Hong Kong dollar tranche is expected to be HK$15 billion to HK$22 billion, while the yuan tranche will be three to four billion yuan, the sources said.

The sources requested anonymity due to the confidential nature of the discussions.

The Airport Authority did not immediately respond to an emailed request for comment.

Earlier, the authority listed its HK$5 billion retail bonds on the Hong Kong stock exchange, offering a 4.25 percent annual interest rate with a maturity of 2.5 years.

The Hong Kong International Retail Bonds received a total of 175,000 applications, amounting to a principal of HK$15.69 billion.

This issuance marks the first-ever listed Hong Kong dollar retail bond by a non-governmental entity and represents the Airport Authority 's first retail bond offering in more than two decades.