The Mass Transit Railway Corp (MTRC) will consider issuing more bonds in different currencies in the second half this year as part of efforts to reach its borrowing target of HK$10 billion. It yesterday listed its US$750 million 10-year global bonds - issued last month - on the local stock exchange and intends to list them also in Luxembourg. 'We believe the listing of this benchmark issue will help promote further investor interest in Hong Kong's debt market,' MTRC chairman Jack So Chak-kwong said. The MTRC bonds were offered on a global basis to US, European and Asian investors last month and represent more than half of this year's borrowing target. MTRC finance director Clement Kwok King-man said it had no urgent need to raise funds, but would consider different fund-raising channels in the second half. Options included Hong Kong dollar bonds, euro bonds, US dollar bonds, yen bonds, multi-currency note programmes and syndicated loans. The MTRC was not planning to issue shares as a financing avenue. Mr Kwok strongly denied market criticism that the MTRC paid too much for its global bond offering. With the bond trading at about 100.6 yesterday - representing a 1 per cent rise from the issue price of 99.6 - there was no great selling pressure in the market, he said. Also, the cost of such an issue would be roughly the same yesterday as it was when issued on January 28. Calculations of the issue's cost needed to take into account movements in the 10-year US Treasury rate, which had risen recently and offset the narrowing in the issue's spread. The bonds were trading in the secondary market yesterday at a spread of 250 basis points over the comparable US Treasury rate - down almost 40 basis points from the 287 basis points at which they were issued. The 10-year US Treasury rate stood at 4.92 per cent yesterday, compared with 4.6 per cent when the bonds were issued. Mr Kwok said taking the two factors into account, the issue would have cost 7.5 per cent if it took place yesterday - similar to its coupon rate. 'You always have to offer a higher spread than the secondary market,' Mr Kwok said. 'We needed to pay a high spread because there were market rumours of a yuan devaluation in January, as well the devaluation of the Brazilian real. 'The spread of the bonds has tightened about 35-40 basis points since the issue, mainly due to positive market sentiment arising from the success of the deal.' By comparison, mainland government bonds were trading at about 275 basis points and Hutchison Whampoa bonds about 285.