The operator of Hong Kong’s main airport has sold bonds for US$1.5 billion to fund development of a third runway, its first deal offering US-based investors the opportunity to participate.
Airport Authority Hong Kong said in a statement it had raised US$900 million in 10-year notes and US$600 million in 30 year bonds, the longest paper it has issued.
The transaction was the second aviation deal in Hong Kong this week after Cathay Pacific raised US$870 million in five year convertible bonds to help the airline shore up liquidity.
Construction of the airport’s third runway is expected to be finished in 2022 and should be fully operational by 2024, according to the airport’s website.
The project is estimated to cost HK$141.5 billion (US$18.3 billion).
Read original article