Airport Authority Hong Kong's US$1.5 Billion Debt Securities Offering
Airport Authority Hong Kong issued its dual-tranche debt securities offering, consisting of US$750m non-call 5.5-year and US$750m non-call 7.5-year perpetual capital securities. This transaction marks the first perpetual bonds offering by the AA and the first US dollar senior perpetual offering in the public bond market from an airport globally. The securities also achieved the lowest coupon rate ever for a US dollar denominated Asian corporate hybrid transaction.
The securities are listed on the Hong Kong Stock Exchange, with the proceeds being used to fund the capital expenditure of the AA, including the Three-runway System (3RS) project, as well as for general corporate purposes. The 3RS project aims to maintain Hong Kong SAR's competitiveness as an international aviation hub and meet future air traffic growth.
The Linklaters team was led by capital markets partner Michael Ng (Picture), with support from counsel Taiki Ki and managing associate Ruby Lau.
The Allen & Overy team advised HSBC, Standard Chartered Bank, UBS, BofA Securities, Bank of China and Mizuho Securities as the joint lead managers and comprised partners John Lee and Agnes Tsang supported by Joel Lam, Jiayin Yu and Erica Lo.
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