Demand for a HK$12 billion (US$1.54 billion) issuance of senior bonds by Hong Kong’s Urban Renewal Authority (URA) exceeded supply by two times, with the order book reaching more than HK$22.8 billion.
The well-received offering drew local and overseas investors including banks, asset managers, insurance companies, central banks and official institutions. It comprises bonds worth HK$4 billion with a three-year tenor, HK$5 billion with a five-year tenor and HK$3 billion with a 10-year term, the authority said on Wednesday.
It is the URA’s first issuance in the Hong Kong dollar public institutional bond market since 2009. The offering is one of the largest ever joint Hong Kong dollar bond offerings in the city, and the five- and 10-year Hong Kong dollar tranches are also the largest on record, the URA said.
The authority said the proceeds from the offering will fund capital expenditures on urban renewal projects and be used for…
