Hong Kong airport taps local debt boom with US$1.9 billion plan

[HONG KONG] Hong Kong’s airport operator plans to raise at least US$1.9 billion from its only public bond sale this year, according to people familiar with the matter, adding to a surge in debt sales denominated in the city’s currency.

Airport Authority has hired investment banks for the issuance and plans to price the multi-tranche deal as early as Tuesday (Apr 28), the people said, asking not to be identified discussing private matters. 

The offering highlights the rising appeal of public bonds denominated in Hong Kong dollars, a market long dominated by private placements, as geopolitical tensions and the currency’s peg to the US dollar boost investor demand.

The transaction follows deals from the government-backed public transport operator and developer MTR Corp, and flagship carrier Cathay Pacific Airways, both of which priced their first public Hong Kong dollar bonds earlier this month.  

A spokesperson for Airport Authority did not immediately respond to a request for comment.

The operator plans to sell bonds with maturities of three, five and 10 years, one of the people said. The funds will be used to refinance debt, invest in projects, and support general corporate needs, the person added. Airport Authority first sold a public bond in the local currency in 2024. BLOOMBERG