Hong Kong airport operator’s first offshore yuan bond raises US$207 million with 8 times oversubscription rate – Technologist

Asian investors were allocated 96 per cent of the bond, which was rated AA+ by S&P, while the rest went to European investors. They included banks, asset managers, private banks and securities firms.

“The successful issuance once again proves the investors’ confidence in the Hong Kong International Airport as a regional and international aviation hub,” said Jack So, AAHK’s chairman. “The notes also diversified AAHK’s funding sources in the capital market with the most competitive financing costs.”

“The well-received transaction also demonstrated investors’ interest in the offshore renminbi bond markets, even for long durations, and we hope this will encourage more issuers to tap the markets in the future,” David Yim, head of capital markets for Greater China and North Asia at Standard Chartered, one of the coordinators of the latest AAHK issuance, said in a statement.

The 1.5 billion yuan issuance, which is expected to be issued on June 5, will be used for general corporate purposes, including capital injections in AAHK’s investment projects.

In February, AAHK raised HK$5 billion in retail bonds in the first opportunity for the general public to invest in the city’s airport operator in two decades. The 4.25 per cent, 2.5-year bonds were oversubscribed more than three times.

The joint global coordinators, bookrunners and lead managers for the latest issuance are Bank of China, HSBC and Standard Chartered. The joint bookrunners and lead managers are Bank of Communications, Credit Agricole CIB, DBS Bank, ICBC and UBS.