UBS successfully issued HK$19 billion in public bonds for the Airport Authority of Hong Kong.

UBS successfully issued Hong Kong dollar bonds for the Airport Authority Hong Kong, raising HK$19 billion (approximately US$2.4 billion). UBS said that this transaction achieved the largest ever non-sovereign Hong Kong dollar public bond issue, with all three tranches achieving the lowest spread compared to other non-sovereign Hong Kong dollar public bond issuances of the same tenor. UBS Global Investment Banking Vice Chairman and Co-Head of Asian Corporate Clients, David Lee, stated that the Airport Authority Hong Kong seized the opportunity to issue bonds in a volatile market environment, successfully completing the largest ever non-sovereign Hong Kong dollar public bond issue. The average cost of funding for this transaction is lower than the Airport Authority Hong Kong's current weighted average cost of capital. The Hong Kong dollar bond issue for the Airport Authority Hong Kong had three tranches: HK$10 billion, HK$6.5 billion, and HK$2.5 billion; with tenors of 3 years, 5 years, and 10 years; and coupon rates of 2.9%, 2.97%, and 3.38%. The net proceeds from the bond issuance will be used by the Airport Authority for refinancing existing debts, capital expenditures (including capital expenditures for the third runway system project), injecting capital into its investment projects, and for general corporate purposes.