Hong Kong International Airport Retail Bonds Successfully Issued

The Hong Kong International Airport Retail Bonds (HKIA Retail Bonds) was successfully issued and listed on the Hong Kong Stock Exchange today, marking a key milestone for the development of Hong Kong International Airport (HKIA).

An issuance ceremony was held at HKEX and officiated by Paul Chan, the Financial Secretary (FS), Jack So, Chairman of Airport Authority Hong Kong (AAHK), Lam Sai-hung, Secretary for Transport and Logistics, and Fred Lam, Chief Executive Officer of AAHK.

Mr So, said, “Thanks to the support from the HKSAR Government and relevant institutions, which led to the great success of the launch of HKIA Retail Bonds. HKIA is one of the major infrastructures of Hong Kong, the issuance of HKIA Retail Bonds enables the general public to participate in the Three-runway System development project and we are pleased to see the overwhelming responses.”

Paul Chan, the FS, said, “Airport Authority has taken on board the government's suggestion of issuing retail bonds and the issuance today represents an important milestone. AAHK has launched institutional bonds in recent years, and this is the first time in more than 20 years for AAHK to issue retail bonds to the public, providing not only an investment option with stable returns, but an opportunity to participate in airport development and share the benefits of infrastructure development directly. This issuance is also a useful reference for the financing of other large scale infrastructure projects in the future.”

The HK$5 billion HKIA Retail Bonds with a tenor of 2.5 years and fixed interest rate of 4.25% per annum recorded a total of 175,178 valid applications for a total of HK$15,690,820,000 in principal amount.