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January 4, 2022

Airport Authority Hong Kong aims to raise $4bn in bond offering

The collected proceeds from the issuance will be used to execute the authority's capital expenditure plans.

Airport Authority Hong Kong (AAHK) is reportedly planning to raise up to $4bn (HK$31.2bn) in a multi-tranche dollar bond offering.

According to a term sheet seen by Reuters, 22 banks have been mandated for the US dollar-denominated multi-tranche bond issuance.

These banks include the Bank of America, BNP Paribas, HSBC, UBS, JPMorgan, Standard Chartered, the Bank of China and Barclays.

According to the term sheet, the amount collected from the issuance will be utilised to implement the authority’s capital expenditure plans.

The news agency added that raising up to $4bn is expected to test the sentiment of the investors towards the Hong Kong International Airport (HKIA), which is operated by AAHK.

Lately, the airport has been experiencing restrictions in flight operations according to the order of the Hong Kong Government due to the Covid-19 pandemic.

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As stated in the term sheet, AAHK will now call Asian, European and US investors to evaluate the demand for the deal.

One of the projected tranches includes a five-year green bond.

This bond will be allotted under the authority’s recently created Sustainable Finance Framework.

Last year, AAHK recorded a loss of $564.21m (HK$4.4bn) for the 2020/2021 financial year that ended in March as the pandemic hammered travel demand.

In December 2021, AAHK revealed its plan to reach Net-Zero Carbon status at HKIA by 2050.

To achieve its goal, the authority aims to reduce direct emissions at the airport and indirect emissions from gas and electricity consumption.

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