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A&O Shearman advises on the USD7 billion multi-currency senior notes offering by Airport Authority Hong Kong

Published Date
Jan 21 2025
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This announcement is not being made available in, and is not for release, publication or distribution, directly or indirectly, in whole or in part, in or into the United States of America, Canada, Australia or Japan or any other jurisdiction in which such distribution or dissemination would be prohibited by applicable law. This announcement is for informational purposes only and is not intended, and should not be construed, as an offer of, or a solicitation of an offer to buy, securities in the United States or any other jurisdiction. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the Securities Act), or the laws of any state of the United States, and may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with all applicable state laws. There will be no public offering of such securities in the United States.

A&O Shearman has advised the joint global coordinators, joint bookrunners and joint lead managers on the USD7bn equivalent multi-currency senior notes offering by the Airport Authority Hong Kong (AAHK). This landmark transaction, which includes Hong Kong dollars (HKD), Renminbi (CNY), and US dollars (USD) tranches, marks the largest public bond offering from a Hong Kong issuer to date.

The HKD notes and the CNY notes are in Regulation S format under AAHK’s USD8bn Medium Term Note Programme, and the USD Notes are in Regulation S/Rule 144A format. The offering comprised nine tranches:

  • HKD10.5bn 4.05% 3-year tranche.
  • HKD4.5bn 4.10% 5-year tranche.
  • HKD2.1bn 4.25% 10-year tranche.
  • HKD1.4bn 4.50% 30-year tranche.
  • CNY2.0bn 2.85% 10-year tranche.
  • CNY1.2bn 3.40% 30-year tranche.
  • USD1.3bn 4.75% 3.5-year tranche.
  • USD1.85bn 4.875% 5.5-year tranche.
  • USD1.0bn 5.125% 10-year tranche.

The HKD18.5bn HKD offering is particularly notable for being the largest ever HKD public bond offering and the 30-year HKD tranche is the longest ever public HKD bond issued globally.

Agnes Tsang A&O Shearman partner commented: "We are delighted to have assisted with this milestone transaction for the Airport Authority Hong Kong (AAHK). The Hong Kong International Airport is a critical hub in the region, serving as a major gateway for international travel and cargo. The success of this landmark transaction not only supports the airport's development but also further bolsters the international bond market and strengthens Hong Kong’s role as international financial center."

The A&O Shearman team was led by partner Agnes Tsang with support from Jiayin Yu, Gordon Ng, Eileen Qu and Michael Leung. Partner Alex Stathopoulos with support from Saranrat Kunanuvat provided U.S. law advice. Additionally, many other team members from A&O Shearman's global network also provided support to the transaction.

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