bond

Airport Authority Hong Kong draws 2.9x subscription for its multi-tranche senior notes offering, underscoring resilient appetite for high-grade Hong Kong dollar debt; the airport's second runway will open in May.

The airline described the bond as a "good opportunity" to diversify funding sources and has committed HK$100bn in investments into its fleet, cabins, lounges and digital innovation.

The offering, which will go towards railway projects and sustainability goals, included a record HK$3bn 30-year tranche.

The government bond was priced at a 5.95% yield, tightening from an initial guidance of around 6.3%.

The buoyancy in the sector is being driven by multiple factors, including regulatory shifts, policy support, and debt capital market activity in the city.

As Hong Kong's primary debt market continues to be attractive, underwriters said the bond will provide a reliable benchmark for future HKD-denominated offerings.

A $500m, 30-year tranche was added to the latest offering to support India’s regional and international trade activities at a time of global trade tensions.

The notes achieved the tightest pricing for five-year, Euro covered bonds from a non-EU issuer, for several years, and is the first such issuance from a Singapore bank since October 2021.

Proceeds from the three-year notes will be mostly used to refinance maturing debentures.