Hong Kong University (HKU) is exploring a potential bond issuance to finance its expansion into the Northern Metropolis University Town, with the university set to hold a two-day non-deal roadshow (NDR) arranged by HSBC this Wednesday and Thursday, according to media reports.
Industry practitioners noted that NDRs are usually conducted to pave the way for future bond issuances, gauge market interest and make preliminary preparations.
While leading overseas universities have long utilized bond issuance as a financing tool, this move is unprecedented in Hong Kong, as no local university has ever entered the bond market.
It is reported that representatives invited to HKU’s NDR include institutional investors such as financial institutions and hedge funds.
When approached for comment, HKU did not confirm whether the NDR was linked to a bond plan, and an HSBC spokesperson declined to comment.
The potential fundraising initiative comes as the government prepares to release three sites in the Hung Shui Kiu/Ha Tsuen New Development Area for universities to establish new campuses.
HKU’s President, Zhang Xiang, stated during a recent media luncheon that the university is in urgent need of land for development and intends to apply for a site in the Northern Metropolis.
Cherry Tse Ling Kit-ching, executive vice president (Administration and Finance), said that the university is consulting faculties on their interest in relocating to the Northern Metropolis and that bond financing remains a possibility.
Treasury Markets Association Chief Executive Officer Chordio Chan Siu-ping said that no local university has issued bonds in Hong Kong before.
He noted that if HKU is holding an NDR, it strongly indicates an interest in doing so, adding that greater participation from diverse bond issuers would help attract investors and drive market development.
Another market source noted that universities have previously sought bank loans for special projects such as property acquisitions.
If HKU proceeds with a bond issuance, it would set a precedent, allowing the university to secure longer-term funding and broaden its investor base to support large projects.
HKU’s 2024/25 annual financial report showed that after returning HK$822 million to the government, the university recorded a total consolidated annual surplus of HK$4.814 billion—the highest among the eight publicly funded universities.
