Linklaters advises Airport Authority Hong Kong on the issuance of its HK$5bn retail bonds

Linklaters advised the Airport Authority Hong Kong (AAHK) on the successful issuance of its HK$5bn retail bonds, with a 2.5-year term and a coupon rate of 4.25% per annum, representing the first listed Hong Kong dollar retail bond issuance by a non-government issuer and the first retail bond issuance by AAHK in over 20 years.

The proceeds of the bonds will be used to fund AAHK’s capital expenditure (including capital expenditure of the three-runway system project) and for general corporate purposes. The bonds are listed on the Stock Exchange of Hong Kong (HKEX) and cleared through the Central Moneymarkets Unit of the Hong Kong Monetary Authority. There are a total of 19 placing banks and 18 designated securities brokers participating in the issuance.

Linklaters advised AAHK on all aspects of the transaction from structuring the bonds and the offering, drafting the offering memorandum and other legal documents, liaising with regulators and all other intermediaries, and applying for relevant approvals from the Securities and Futures Commission and the HKEX.

Linklaters’ cross-jurisdictional team was led by capital markets partner Michael Ng and supported by counsel Grace Wee alongside solicitors Xiaoming Zhong, Cherrylene Lee and Lily Wang.

Linklaters’ capital markets partner Michael Ng commented,

"We are honoured to be the legal advisor to the Airport Authority Hong Kong and to have a longstanding relationship with them. We are delighted to have advised on their first retail bond issuance in over 20 years. We believe this deal marks a milestone and kick-starts a new era of the local retail bond market. We look forward to continuing to support them in their issuances to both international investors and local retail investors. "