Airport Authority announces launch of Hong Kong International Airport retail bonds

The Airport Authority (the “AA”) announced the launch of Hong Kong International Airport retail bonds (the “Bonds”) in Hong Kong on the 5th January, 2024.

Only members of the public with valid Hong Kong identity cards are eligible to subscribe for the Bonds through appointed placing banks, the Hong Kong Securities Clearing Company Limited or designated securities brokers.

The Offering Memorandum dated 5 January 2024 (the “Offering Memorandum”) can be viewed online at the AA’s website (www.hongkongairport.com) and the website of The Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”) (www.hkexnews.hk). The key information about the Bonds is summarised below:

• Maximum issue amount: HK$5 billion
• Tenor: 2.5 years
• Interest rate (coupon): 4.25% per annum, payable every three months in arrear
• Principal application amount: an integral multiple of HK$10,000
• Early Redemption: Investors can submit an early redemption request by the specific deadlines to require the AA to redeem some or all of the Bonds at 100% of their principal amount, together with accrued and unpaid interest to (but excluding) the date of redemption
• Subscription period: 9am on 17 January 2024 to 2pm on 25 January 2024

The Bonds will be issued on 5 February 2024 and listed on the Hong Kong Stock Exchange on the following business day (6 February 2024). The AA has appointed 10 banks to act as market makers for the Bonds. The market makers are appointed to use their best efforts to maintain a market in the Bonds in over-the-counter transactions for retail investors.

For more information, please view the official press release here.