Linklaters advises Airport Authority Hong Kong on its proposed USD notes issuance to fund Three-runway System development

Linklaters advised the Airport Authority Hong Kong (the “AA”) on the pricing of its issuance of US$500 million 3.45% notes due 2029 (the “Notes”) under its US$8 billion Medium Term Note Programme (“MTN Programme”). The Notes are expected to be listed on the Hong Kong Stock Exchange and mark the first public offering bonds from the AA since 2003. HSBC and Citigroup are the joint lead managers for the offering.

Proceeds from the Notes will be used for capital investment and general corporate purposes as well as to fund the capital expenditure of the Three-runway System (the “3RS”) development. This institutional bond is the first financing for the 3RS project from the capital markets. The 3RS development aims to maintain Hong Kong's competitiveness as an international aviation hub and meet future air traffic growth, by enabling the servicing of an increased volume of passengers annually. Construction commenced in August 2016 and is targeted to complete by 2024.

Linklaters has been a long-standing working partner with the AA for over 15 years, and their Capital Markets, Banking and Projects practices have provided support on many of the AA’s important transactions, including the establishment and annual updates of its MTN Programme.

The Linklaters team was led by partners Michael Ng and Gloria Cheung, supported by associates Ruby Lau and Anthony Lo.

Capital Markets partner, Michael Ng, commented:

“Linklaters remains a trusted adviser for many of Asia’s most prominent infrastructure development projects. We are proud to be involved in this crucial transaction for the AA, and excited to continue our strong and long-established working relationship with them.”