H78 on Wednesday said its inaugural 10-year US$500 million green bond offering was about three times subscribed.
The US dollar-denominated senior unsecured notes, which will mature on July 15, 2031, carry a coupon of 2.25 per cent per annum and a re-offer yield of 2.314 per cent, according to a term sheet seen by The Business Times. (see Amendment note)
Deal statistics showed an order book of US$1.6 billion. The bond was allocated to a mix of 97 per cent Asian and 3 per cent European institutional investors. Of this, 52 per cent went to fund managers, 37 per cent went to banks, 6 per cent went to insurers, 3 per cent to the public sector and 2 per cent to private banks and others.
The bond falls under the group's medium-term notes programme and is expected to be rated A2 by Moody's Investors Service and A by Standard & Poor's. The issuer of the bond is the group's subsidiary - The Hongkong Land Finance (Cayman Islands) Company.
Net proceeds from the issuance will be used to fund the group's initiatives relating to green buildings, energy efficiency, renewable energy, clean transportation, sustainable water management and climate change adaptation, under the group's newly-established green financing framework, Hongkong Land said.
HSBC acted as the green structuring adviser, sole global coordinator and joint lead manager and joint bookrunner. The other joint lead managers and joint book runners are Bank of China (Hong Kong) and DBS.
Shares of mainboard-listed Hongkong Land were trading 0.4 per cent or US$0.02 higher at US$4.77 as at 3.40pm on Wednesday.
Amendment note: A previous version of the story incorrectly stated the maturity date of the bonds. The article has been amended to reflect the change.