Rail giant’s sells five-year, 10-year and 30-year bonds, with the size of each tranche also representing the largest for their respective tenors to date
The MTR Corporation has sold HK$18.8 billion (US$2.4 billion) in green bonds, the largest and the company’s first public bond issuance in the Hong Kong dollar market, in its latest efforts to diversify funding sources for a string of projects.
The rail giant said on Wednesday that it sold five-year, 10-year and 30-year bonds, with the size of each tranche also representing the largest for their respective tenors to date.
The overall order book of the issue exceeded HK$60 billion, or three times the total issue size, reflecting strong demand, the semi-privatised corporation said.
The more than HK$8.3 billion five-year tranche, HK$7.5 billion 10-year tranche and HK$3 billion 30-year tranche were priced with coupons of 2.88 per cent, 3.30 per cent and 4.00 per cent respectively, the corporation said.
The 30-year tranche appealed strongly to long-term institutional investors such as retirement fund managers, allowing citizens to support the city’s infrastructure development, it added.
“The latest issuance is part of an ongoing, forward-looking financing strategy to leverage favourable market conditions in the capital markets to support the development of major railway infrastructure construction for Hong Kong’s future,” the MTR Corp’s CEO Jeny Yeung Mei-chun said.
Source: News - South China Morning Post
