Hong Kong’s rail giant has sold its first-ever Australian dollar-denominated green bonds for a record A$2 billion (US$1.4 billion) to fund environmentally friendly projects, marking the country’s largest order book.
The bonds, issued in two equal tranches, were oversubscribed more than sixfold by a variety of investors, the MTR Corporation said on Tuesday.
The offering represented the largest-ever Australian dollar corporate green bond and the largest dual-tranche corporate bond in the market. It was also the biggest corporate order book ever achieved in the country’s currency.
“The issuance of our inaugural Australian dollar green bonds is the next step in our efforts to maintain a highly diversified funding base to drive business growth,” MTR finance director Michael Fitzgerald said.
“We are delighted with the very positive response from investors, including insurance companies, official institutions, pension funds, sovereign wealth funds, asset managers, banks, securities houses and private banks from around the world,” he said.
He added that the proceeds would further strengthen the corporation’s financial foundation and enhance its flexibility to support the capital investment programme, which will enable it to build more vibrant communities and uphold service excellence.
An MTR spokesman said the bonds were issued in a dual-tranche transaction comprising a five-year tranche of A$1 billion and a 12-year tranche of A$1 billion, with coupon rates set at 4.886 per cent and 5.582 per cent, respectively.
