Linklaters advised the Airport Authority Hong Kong (AA) on the successful issuance of 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, with support from counsel Taiki Ki and managing associate Ruby Lau.

Partner, Michael Ng, commented:

“Linklaters has been a long-standing working partner with Airport Authority of Hong Kong for 20 years, supporting them on many of their important transactions. We are honoured to have had the opportunity to support the AA on this landmark offering and would like to thank them for their continued trust in us.”

Linklaters is a long-term partner of the AA, with their capital markets, banking and energy & infrastructure practices providing support on many of the AA’s important transactions, including its issuance of US$500m 3.45% notes due 2029 under its US$8bn medium term note (MTN) programme in 2019 (the first public offering bonds from the AA since 2003), as well as the establishment and annual updates of its MTN programme. The firm also advised the AA earlier this year on its 5-year term and revolving facilities, which will support the costs of the upgrade of the Hong Kong International Airport and construction of the third runway.