The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
BLOOMBERG
The Airport Authority Hong Kong is offering its first-ever local currency public bond, pricing a HK$4 billion ($512 million) debt deal as passenger traffic recovers at the financial hub. The 3.5-year bond has been priced to yield 3.83%, according to a person 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 person, who asked not to be identified because they’re not authorised to discuss it. The airport operator received orders over HK$11.1 billion from 57 accounts, the person said.
The deal can further foster the development of Hong Kong’s local bond market, the AAHK said in a statement. “The issuance diversified AAHK’s funding sources at capital market with the most competitive financing costs,” Chairman Jack So said. Its last bond offering was a year ago, when it marketed a $3 billion four-part debt deal, including a five-year green note of $1 billion.
Hong Kong’s airport passenger traffic has recovered to about 80% of the pre-pandemic level, the airport authority said in a statement.
Passenger traffic at the airport is expected to fully recover to the pre-pandemic level by the end of 2024, it said.