Linklaters advised the Airport Authority Hong Kong (AAHK) on its successful issuance of US$7bn equivalent multi-currency notes in three currencies and nine tranches, representing the largest ever public bond offering from a Hong Kong SAR issuer.
The offering includes four tranches of three-year, five-year, 10-year, and 30-year bonds in Hong Kong dollars, with an aggregate amount of HK$18.5bn (approximately US$2.38bn). This is the largest ever Hong Kong dollar public bond offering to date, and the 30-year tranche is the longest public Hong Kong dollar bond issued globally. Additionally, the issuance includes three tranches of US dollar bonds, with tenures ranging from 3.5 to 10 years, amounting to US$4.15bn, and two tranches of RMB bonds, with tenures of 10 and 30 years, totalling RMB 3.2bn (approximately US$440m).
This inaugural multi-currency bond offering was well-received by a broad range of global investors, with a 3.7x oversubscription rate. The proceeds from the bond issuance will be used to refinance existing debt, support capital expenditures, invest in projects, and for other general corporate purposes.
The Linklaters cross-practice, cross-jurisdictional team was led by capital markets partner Michael Ng, with support from capital markets counsel Christian Felton, solicitors Lily Wang and Shuopeng Yin. Litigation, arbitration and investigations counsel Michael Lamson and US tax counsel Omer Harel provided specialist support for the transaction.
Linklaters capital markets partner Michael Ng commented:
“We are honoured to have been a trusted legal advisor to the Airport Authority Hong Kong over the past two decades. It has been our privilege to support them in this landmark issuance, which further cements Hong Kong’s stature as a leading bond market in Asia and solidifies its role as an international financial centre. Our team looks forward to continuing to support the Airport Authority in future strategic transactions, helping to drive innovation and growth in this dynamic market.”
As long-term legal advisor to AAHK, Linklaters was also involved in its HK$5bn retail bond issuance, as well as all previous public note offerings by the AAHK under its US$8bn Medium Term Note Programme and other types of bond offerings.
