Hong Kong airport debuts local currency bond of HK$4 billion

THE Airport Authority Hong Kong is offering its first-ever local currency public bond, pricing a HK$4 billion (S$679 million) debt deal as passenger traffic recovers at the financial hub.

The 3.5-year bond is priced late Tuesday (Jan 2) to yield 3.83 per cent, according to a source familiar with the matter. The proceeds will be used for the airport’s capital expenditure, including plans for its third runway project and general corporate purposes, said the source, who asked not to be identified because they are not authorised to discuss it.

The airport operator received orders over HK$11.1 billion from 57 accounts, the source said.

Its last bond offering was a year ago, when it marketed a US$3 billion four-part debt deal, including a five-year green note of US$1 billion.

Hong Kong’s airport passenger traffic has recovered to about 80 per cent of the pre-pandemic level, the airport authority said on Dec 27. Passenger traffic at the airport is expected to fully recover to the pre-pandemic level by the end of 2024, it said. BLOOMBERG