MTR Corp prices tight benchmark

Hong Kong rail operator returns to the international bond markets for the first time since November 2000.

House banks Goldman Sachs, HSBC and UBS priced an increased $600 million Reg S bond issue for MTR Corp yesterday. The A1AAA- rated deal was increased by $100 million after accumulating an order book of $1.9 billion and priced inside initial guidance.

Terms comprise a 10-year maturity with an issue price of 99.121%, coupon of 4.75% and yield of 4.862%. This equates to a spread of 83bp over Treasuries, or 44bp over Libor. Fees total just 15bp and there is no other syndicate.

Just over 130 investors participated in the deal with a geographical split that saw 75% placed into Asia and 25% into Europe. When the group...

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