MTR Corp Ltd has raised HK$18.9 billion (US$2.4 billion or RM9.5 billion) through its first-ever public Hong Kong dollar bond issuance, as more borrowers tap into the city’s funding market.
The Hong Kong government–backed public transport operator and property developer priced five-, 10- and 30-year green notes to finance or refinance eligible projects, according to a person familiar with the matter. The combined order book exceeded HK$60 billion.
Historically, most Hong Kong dollar bond issuances have been private placements or unlisted deals, and MTR’s previous issuances in the currency were also unlisted.
However, more issuers have recently turned to the public bond market as demand for Hong Kong dollar assets rises, supported by its perceived safe-haven status amid global geopolitical tensions.
According to data compiled by Bloomberg, corporate and government issuers have raised HK$34.1 billion from publicly announced Hong Kong dollar bond deals so far this year, a record for the period.
Market participants said the shift is being driven by lower funding costs compared to US dollar markets and strong investor demand for high-quality assets.
Analysts noted that Hong Kong dollar investments have traditionally been dominated by private placements and certificates of deposit, which tend to be held to maturity. A rise in high-quality issuers could improve market liquidity and broaden investor participation.
Recent issuances in the market include bonds from Germany’s KfW development bank, the Asian Infrastructure Investment Bank, and the African Development Bank.
