Linklaters advises on multiple landmark Hong Kong SAR capital market issuances

Linklaters recently advised on a trio of market-leading transactions, raising a total value of approx. US$5bn long-term funding for the Hong Kong SAR government, the Airport Authority Hong Kong and Cathay Pacific in three consecutive days. These involved advising:

• the underwriters on Hong Kong SAR (HKSAR) government’s successful offering of the Rule 144A/Regulation S US$2.5bn triple-tranche green bonds offering. This transaction represents Asia’s first 30-year sovereign green bond issuance and the longest tenor issued by the HKSAR government. Linklaters previously advised on HKSAR government’s inaugural sovereign green bond issuance in 2019. These green bond issuances have contributed to building a comprehensive benchmark curve for potential issuers in Hong Kong, as well as supporting the government’s continued efforts in the sustainable development of the city.

• the Airport Authority Hong Kong (AA) on its US$1.5bn dual-tranche senior notes offering – marking the AA’s inaugural Rule 144A/Regulation S bond issuance. Linklaters previously advised the AA on its debut US$1.5bn perpetual securities offering in December 2020. The proceeds from both transactions will be used to fund the capital expenditure of the AA, including the three-runway system project, as well as for general corporate purposes. These offerings contribute to the strengthening of Hong Kong’s status as an international aviation hub within the Greater Bay Area.

• Cathay Pacific on its HK$6.74bn convertible bond issuance – one of the largest convertible bonds by a Hong Kong issuer in the past decade, with the aim to further strengthen the airline’s liquidity and working capital position. Linklaters previously advised Cathay Pacific on its HK$39bn recapitalisation plan which supports Cathay Pacific to maintain its competitiveness and operations, while upholding the airline’s critical role to Hong Kong’s status as a global aviation centre.

The transactions were led by Hong Kong based capital markets partners William Liu, Michael Ng and Gloria Cheung, with support from counsel Taiki Ki and Christian Felton.

Asia Head of Capital Markets, William Liu, commented:

“Linklaters has been deeply rooted in Hong Kong for nearly 45 years. We are grateful to have had the opportunities to participate in these high profile transactions raising funds for the city and its key business sectors. We thank our clients for their continuous trust placed in us. We take pride in being able to play our part in supporting the city as an international financial centre and travel hub.”