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Denise Tsang

Hong Kong rail giant the MTR Corporation has raised €3 billion (US$3.5 billion) by selling its first euro-denominated public green bonds, in its largest bond deal to date.
The semi-privatised corporation said on Thursday that the sale also marked the largest Asia ex-Japan non-sovereign euro green bond offering.
Amid a string of new rail projects in Hong Kong, the MTR Corp is raising fresh capital to fund them. The latest deal is the third round of bond sales so far this year, bringing the total raised to HK$57.34 billion (US$7.35 billion).
The euro bond sale on Wednesday comprised three tranches with maturities of eight, 12 and 20 years.
The €1 billion eight-year tranche, €1 billion 12-year tranche and €1 billion 20-year tranche were priced with coupons of 3.25 per cent, 3.625 per cent and 4.125 per cent, respectively.
Demand was strong, with the combined order book peaking at €10.2 billion, more than three times the total issue size, the corporation said.
It said the proceeds would be used to invest in eligible green projects.
Green bonds are fixed-income instruments used to raise capital for environmentally sustainable infrastructure projects and business activities.
Sustainable Fitch Ratings, an agency that assesses environmental, social and governance (ESG) performance across asset classes, last week said that the MTR Corp’s plan to issue euro-denominated green bonds would support the city’s decarbonisation targets.
“We view both use of proceeds categories to be environmentally positive for supporting the Hong Kong transport sector’s decarbonisation and reducing energy use,” it said.
In January, the corporation raised A$2 billion (US$1.4 billion) via green bonds in Australia, followed by another HK$18.8 billion green bond sale in Hong Kong in April.


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Hong Kong’s MTR Corporation raises €3 billion in its first public euro green bond sale

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Hong Kong’s MTR Corporation raises €3 billion in its first public euro green bond sale

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The offering marks Hong Kong rail giant’s largest-ever bond deal

The offering marks Hong Kong rail giant’s largest-ever bond deal