Airport Authority

HKD4bn Inaugural HKD Public Offering

The Client

The Airport Authority is a statutory body corporate owned by the HKSAR Government. It operates the Hong Kong International Airport, one of the busiest airports worldwide in terms of international passenger throughput and international freight throughput.

The Challenge

Leverage on the institutional offering to enhance the reception of its following retail bond offering
Transaction execution needed to be well-planned and agile to minimize execution risk
Careful consideration of tenor to optimize pricing and order momentum

The Solution

A successful issuance of the inaugural HKD institutional offering with a mutually attractive pricing for both AAHK and investors. Setting the offering to have a constructive secondary trading post issuance
Various marketing tools including press releases, advertising campaign via TV and press, and coordination of marketing materials across institutional offering and the retail offering
Defensive and proven tenor choice in current market volatility
Precise execution with a carefully crafted marketing strategy and defined transaction timing
Setting a benchmark in the HKD bond market which leads to supporting the local currency market

The Result

Citi is a Joint Global Coordinator, Joint Bookrunner and Joint Lead Manager on this transaction
First primary market issuance out from Asia for 2024, reopening the market as a pioneer for APAC borrowers
Inaugural HKD denominated public institutional offering by AAHK providing diversification of funding sources with the most competitive financing costs
Leveraging on AAHK’s strong credit profile and tactic intraday execution strategy, the transaction successfully achieved an aggressive compression from IPG supported by an overwhelming orderbook of USD11bn+ allocable demand
The successful transaction showcases AAHK’s support to foster the development of Hong Kong’s local bond markets