HK Airlines takes off with maiden perpetual bond

The HNA-backed airline raises $250 million as it joins a recent fundraising rush in the region. But turbulence in the aviation world means demand is cooler than for some issuers.

Hong Kong Airlines, controlled by China's acquisitive HNA Group, returned to the international bond markets on Friday, raising $250 million through the sale of a senior perpetual bond.

The airline, which is privately held and unrated, launched its debt sale three days after Richard Li’s insurer FWD Group sold a $250 million subordinated perpetual bond that captured more than $6.75 billion of demand.

However, interest in HK Airlines was far cooler, with the peak order book reaching $500 million reflecting the challenging outlook for the aviation industry.

“The credit profile and industry risk of the two deals are very different, with the...

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