Airport Authority Hong Kong Priced Around USD7 Billion Equivalent Multi-Currency Senior Notes Offering

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(Hong Kong, 9 January 2025, 1400hrs) – Airport Authority Hong Kong (AAHK) announces that it has successfully priced around USD7 billion Equivalent Multi-Currency Senior Notes Offering in Hong Kong dollars (HKD) (the “HKD Notes”), Renminbi (CNY) (the “CNY Notes”) and US dollars (USD) (the “USD Notes”, together with the HKD Notes and the CNY Notes, the “Notes”). The HKD Notes and the CNY Notes are in Regulation S format under AAHK’s USD8 billion Medium Term Note Programme, and the USD Notes are in Regulation S/Rule 144A format. The offering comprises of:

• HKD10.5 billion 4.05% 3-year tranche
• HKD4.5 billion 4.10% 5-year tranche
• HKD2.1 billion 4.25% 10-year tranche
• HKD1.4 billion 4.50% 30-year tranche
• CNY2.0 billion 2.85% 10-year tranche
• CNY1.2 billion 3.40% 30-year tranche
• USD1.3 billion 4.75% 3.5-year tranche
• USD1.85 billion 4.875% 5.5-year tranche
• USD1.0 billion 5.125% 10-year tranche

The HKD Notes and CNY Notes offering was priced on 7 January 2025. Following the successful pricing of the HKD Notes and CNY Notes, AAHK immediately launched and priced the USD Notes offering on 8 January 2025.

The HKD18.5 billion HKD offering marks the largest ever HKD public bond offering to-date, and the 30-year HKD tranche is the longest ever public HKD bond issued globally. The combined tranches of all Notes aggregate around USD7 billion equivalent, representing the largest ever public bond offering from a Hong Kong issuer.

This inaugural multi-currency bond offering is also a significant milestone for AAHK as it aims to diversify its funding sources while catering to a broad range of global investors. The sequential execution of the offering is targeted to cater to the current rates environment of various currencies, with the aim of optimising AAHK’s financing cost. The Notes were well-received by investors including sovereign wealth funds, asset managers, corporations, banks and insurance companies, with combined peak orderbook over USD25.6 billion equivalent, representing an oversubscription rate of 3.7 times.

AAHK successfully raised the amount of financing it targeted and will use the net proceeds from the issues of the HKD Notes and USD Notes to refinance existing indebtedness, to fund its capital expenditure, and for other general corporate purposes. The net proceeds from the issue of the CNY Notes is mainly for capital injections and investments in its investment projects and for other general corporate purposes. AAHK is dedicated to delivering a world-class airport experience and contributing to the growth of the regional and global aviation industry.

Fred Lam, Chairman of AAHK said, “We are very pleased with the positive responses from investors around the world. By introducing a bond structure that accommodates multiple currencies, we aim to attract a diverse investor base while optimising our capital structure to support the continuous development of airport. The HKD offering will further support the development of the HKD bond market and strengthening Hong Kong’s role as international financial center.”

The HKD Notes and CNY Notes are expected to be issued on 14 January 2025 and the USD Notes are expected to be issued on 15 January 2025, subject to the satisfaction of certain conditions precedent and are expected to be listed on The Stock Exchange of Hong Kong Limited.

Each of the Notes are expected to be rated “AA+” by S&P.

The Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers for the HKD Notes are Bank of China, BofA Securities, Crédit Agricole CIB, HSBC, J.P. Morgan, Standard Chartered Bank and UBS; and the Joint Bookrunners and Joint Lead Managers for the HKD Notes are ANZ, BNP PARIBAS, Citigroup, DBS Bank Ltd. and Mizuho.

The Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers for the CNY Notes are Bank of China, Crédit Agricole CIB, HSBC, Standard Chartered Bank and UBS; and the Joint Bookrunners and Joint Lead Managers for the CNY Notes are Bank of Communications, BofA Securities, DBS Bank Ltd., Deutsche Bank, ICBC (Asia), J.P. Morgan and Mizuho.

The Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers for the USD Notes are BofA Securities, HSBC, J.P. Morgan, Standard Chartered Bank and UBS; and the Joint Bookrunners and Joint Lead Managers for the Notes are ANZ, Bank of China, Citigroup, Crédit Agricole CIB, DBS Bank Ltd., Deutsche Bank, Goldman Sachs and Morgan Stanley.

The Financial Advisor to AAHK is Rothschild & Co.

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