Linklaters has counselled the Airport Authority Hong Kong (AAHK) on issuing its first multi-currency senior notes amounting to USD7 billion, setting a record as the largest public bond issued by a Hong Kong issuer. A&O Shearman also took part, as counsel for the underwriters.
Capital markets partner Michael Ng led the Linklaters team, with counsel from the litigation, arbitration and investigations practice as well as the US tax team.
A&O Shearman’s partner Agnes Tsang advised the underwriters on international law and partner Alexander Stathopoulos assisted on US law matters.
The AAHK issued nine tranches of bonds in renminbi, and Hong Kong and US dollars on 14 and 15 January 2025, ranging from RMB1.2 billion to USD1.85 billion. Among them is a 30-year HKD1.4 billion bond with an interest rate of 4.5%, which is the longest-duration public Hong Kong dollar bond issued to date.
The authority issued multi-currency notes to attract a diversified batch of investors to support the continuous development of the Hong Kong International Airport, the AAHK said.
The four tranches of Hong Kong dollar bonds are: a 3-year HKD10.5 billion bond with a 4.05% interest rate, a 5-year HKD4.5 billion bond with a 4.1% interest rate, a 10-year HKD2.1 billion with a 4.25% interest rate and a 30-year HKD1.4 billion with a 4.5% interest rate.
The AAHK also issued two tranches of renminbi bonds including a 10-year RMB2 billion bond with a 2.85% interest rate and a 30-year RMB1.2 billion bond with a 3.4% interest rate. The remaining three USD tranches are: a 3.5-year USD1.3 billion bond with a 4.75% interest rate, a 5.5-year USD1.85 billion with a 4.875% interest rate and a 10-year USD1 billion with a 5.125% interest rate.
