Published on 2/1/2024 in the Prospect News Emerging Markets Daily.
New Issue: Hong Kong’s Airport Authority allocates full HK$5 billion of 4¼% bonds
Chicago, Feb. 1 – Airport Authority Hong Kong closed and allocated the public offering for HK$5 billion of 4¼% bonds due Aug. 5, 2026 (AA+), according to an announcement.
The bonds were priced at par, and the maximum amount to be sold was HK$5 billion.
Applications for the bonds totaled HK$15,690,820,000. The authority referred to the allocations mechanisms as set out when the offer started.
The bonds are non-callable; however, bondholders are entitled to put the bonds at par on any interest payment date starting March 6 or upon occurrence of a relevant event.
Bank of China (Hong Kong) Ltd. and HSBC Ltd. are the joint lead managers, also serving as placing banks alongside Bank of Communications (Hong Kong) Ltd., Bank of East Asia, Ltd., China Citic Bank International Ltd., China Construction Bank (Asia) Corp., Ltd., Chiyu Banking Corp., Ltd., Chong Hing Bank Ltd., Citibank (Hong Kong) Ltd., CMB Wing Lung Bank Ltd., Dah Sing Bank, Ltd., DBS Bank (Hong Kong) Ltd., Fubon Bank (Hong Kong) Ltd., Hang Seng Bank Ltd., Industrial and Commercial Bank of China (Asia) Ltd., Nanyang Commercial Bank, Ltd., OCBC Bank (Hong Kong) Ltd., Shanghai Commercial Bank Ltd. and Standard Chartered Bank (Hong Kong) Ltd.
Bright Smart Securities International (H.K.) Ltd., Chief Securities Ltd., Essence International Securities (Hong Kong) Ltd., Everbright Securities Investment Services (HK) Ltd., First Shanghai Securities Ltd., Futu Securities International (Hong Kong) Ltd., Hong Kong International Securities Ltd., Sanfull Securities Ltd., Sinolink Securities (Hong Kong) Co., Ltd., SinoPac Securities (Asia) Ltd., SoFi Securities (Hong Kong) Ltd., South China Securities Ltd., Tai Shing Stock Investment Co., Ltd., Tai Tak Securities (Asia) Ltd., Tiger Brokers (HK) Global Ltd., UOB Kay Hian (Hong Kong) Ltd., Victory Securities Co. Ltd. and Wocom Securities Ltd. are the designated securities brokers for the offering.
The subscription period ran from 8 pm on Jan. 17 to 1 a.m. ET on Jan. 25.
Listing for the bonds is expected on the Hong Kong Exchange effective Feb. 6.
Proceeds will be used to fund capital expenditures, including its 3RS Project, and for general corporate purposes.
The issuer is a statutory body corporate established in Hong Kong under the Airport Authority Ordinance.
| Issuer: | Airport Authority Hong Kong
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| Amount: | HK$5 billion
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| Issue: | Bonds
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| Maturity: | Aug. 5, 2026
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| Bookrunners: | Bank of China (Hong Kong) Ltd. and HSBC Ltd. (joint lead managers), Bank of Communications (Hong Kong) Ltd., Bank of East Asia, Ltd., China Citic Bank International Ltd., China Construction Bank (Asia) Corp., Ltd., Chiyu Banking Corp., Ltd., Chong Hing Bank Ltd., Citibank (Hong Kong) Ltd., CMB Wing Lung Bank Ltd., Dah Sing Bank, Ltd., DBS Bank (Hong Kong) Ltd., Fubon Bank (Hong Kong) Ltd., Hang Seng Bank Ltd., Industrial and Commercial Bank of China (Asia) Ltd., Nanyang Commercial Bank, Ltd., OCBC Bank (Hong Kong) Ltd., Shanghai Commercial Bank Ltd. and Standard Chartered Bank (Hong Kong) Ltd.
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| Brokers: | Bright Smart Securities International (H.K.) Ltd., Chief Securities Ltd., Essence International Securities (Hong Kong) Ltd., Everbright Securities Investment Services (HK) Ltd., First Shanghai Securities Ltd., Futu Securities International (Hong Kong) Ltd., Hong Kong International Securities Ltd., Sanfull Securities Ltd., Sinolink Securities (Hong Kong) Co., Ltd., SinoPac Securities (Asia) Ltd., SoFi Securities (Hong Kong) Ltd., South China Securities Ltd., Tai Shing Stock Investment Co., Ltd., Tai Tak Securities (Asia) Ltd., Tiger Brokers (HK) Global Ltd., UOB Kay Hian (Hong Kong) Ltd., Victory Securities Co. Ltd. and Wocom Securities Ltd.
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| Trustee: | Bank of China (Hong Kong) Trustees Ltd.
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| Counsel to issuer: | Linklaters
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| Counsel to underwriters: | Deacons
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| Coupon: | 4¼%
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| Price: | Par
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| Yield: | 4¼%
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| Call features: | Non-callable
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| Puts: | At par on any interest payment date
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| Offer period: | Jan. 17 to Jan. 25
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| Settlement date: | Feb. 5
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| Ratings: | S&P: AA+
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| Distribution: | Public
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| ISIN: | HK0000979754
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