MTR Corporation (00066) issued two green bonds, raising a total of 4.5 billion RMB.

On September 11, MTR CORPORATION (00066) announced that the company had priced its first offshore Renminbi green bonds under the sustainable financing framework on September 10, 2024, including 3 billion RMB 10-year bonds and 1.5 billion RMB 30-year bonds. The bonds were issued through the company's debt issuance program. The bond issuance received strong support from both local and overseas institutional investors in Hong Kong, including sovereign wealth funds, insurance companies, asset management companies, banks, private banks, and securities firms. The total order subscription amount exceeded 19.9 billion RMB, with a subscription ratio of over 4.4 times, leading to a final pricing 35 basis points tighter than the initial price guidance. The 10-year bonds carry a fixed semi-annual coupon rate of 2.750% and mature on September 20, 2034, at a price of 100% of face value. The 30-year bonds have a fixed semi-annual coupon rate of 3.050% and mature on September 20, 2054, also at a price of 100% of face value. These bonds are expected to be rated AA+ by Standard & Poor's. Michael Fan, CFO of MTR CORPORATION, stated that this bond issuance marked a milestone for the company's first public offering of offshore Renminbi bonds and laid the foundation for future financing activities. It demonstrated the company's effective financing strategy, actively supported sustainable development with diversified funding sources and investor base. BOC HONG KONG, Bank of China (Hong Kong), HSBC, Mizuho, and Standard Chartered Bank acted as joint global coordinators, joint bookrunners, and joint lead managers for the green bond issuance. ANZ, Barclays, BNP Paribas, DBS Bank, Deutsche Bank, ICBC Asia, JPMorgan, Mitsubishi UFJ Securities, OCBC Bank, Nomura, and Natixis were appointed as joint bookrunners and joint lead managers for the green bond issuance. Andrew Wu, Managing Director of Debt Capital Markets at HSBC investment banking in Asia Pacific, expressed delight in serving as joint global coordinator, joint bookrunner, and joint lead manager for MTR CORPORATION's inaugural issuance of 4.5 billion RMB public offshore Renminbi green bonds. Wu noted that the issuance of the 30-year bonds in this deal marked the longest tenor of public issuance in the offshore Renminbi bond market, further solidifying Hong Kong's position as a leading offshore Renminbi center globally. This issuance provides international investors with more diverse options for Renminbi asset allocation and, with strong investor demand, supports liquidity in the long end of the offshore Renminbi bond yield curve.