The Hong Kong debt capital market was boosted today by a benchmark HK$2.5 billion $320 million offering from the Airport Authority AA via HSBC. The deal, AA's first venture in the capital markets, is significant, not only in terms of its size, but also because it is the first time that a quasi-sovereign entity has issued floating rate notes.
The deal was split into two HK$1.25 billion tranches, of three- and five-year maturities. The three-year piece was nominally priced at 8bp over three-month Hibor, which with fees of 18 cents, offers a real spread of 14bp over. The five-year notes carry a spread of 18bp over, and with fees of...
