Hong Kong's MTR Corp raises US$3 billion from its largest bond issue
Hong Kong's MTR Corp has issued its largest public bond, raising US$3 billion from a three-tranche offering amid a hot credit market in Asia.
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The railway operator's bond received a strong response from local and international institutional investors, who subscribed to US$13.4 billion in the book-building process, or 4.47 times the issue size. The pricing was tightened by 27 to 35 basis points from the initial price guidance.
The five-year US$500 million tranche was priced at 4.375 per cent, the 10-year US$1 billion note at 4.875 per cent and the 30-year US$1.5 billion tranche at 5.25 per cent. The 30-year tranche was the largest US dollar note from a Hong Kong corporate issuer in more than two decades, MTR Corp said on Wednesday.
'The successful bond issuance highlights the confidence investors have in our operational capabilities and financial strength,' said Michael Fitzgerald, MTR Corp's finance director.
The MTR's operation control centre in Tsing Yi. Photo: Elson Li
The funds would support infrastructure development and asset replacement, he added.
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The transaction set new benchmarks for issuers in Hong Kong and Asia, according to Rainy Lu, executive director of debt capital markets at UBS global banking. UBS was a joint global coordinator for the issue.
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