HK Telecom wires up $500m bond

Hong Kong’s biggest telecommunications company looks to extend its debt-maturity profile and cut overall funding costs with its latest bond offering.
HK Telecom is a subsidiary of billionaire Richard Li Tzar-kai’s PCCW
HK Telecom is a subsidiary of billionaire Richard Li Tzar-kai’s PCCW

Hong Kong Telecom sold a $500 million 10-year bond late on Monday as it pressed ahead with a liability management programme that aims to improve its debt profile and lower its funding costs.

Rated Baa2BBB by Moody’s and Standard Poor’s, the Reg-S offering priced at US Treasuries plus 178 basis points, which is 17bp tighter than initial price guidance, according to a term sheet seen by FinanceAsia.

The investment-grade note, which is guaranteed by HKT Group and Hong Kong Telecommunications, has a coupon of 3.625%. Despite no roadshow, orderbooks reached in excess of $4 billion when it priced from more than 270...

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