Hong Kong’s embattled Urban Renewal Authority raises HK$8 billion in bond sale
Cash-strapped authority sells two tranches of bonds, one worth HK$5 billion with five-year term and other for HK$3 billion with 10-year term
Hong Kong’s beleaguered Urban Renewal Authority (URA) has raised HK$8 billion (US$1.02 billion) by selling bonds to finance capital expenditure and new projects.
The cash-strapped authority on Wednesday said it sold two tranches of bonds, one worth HK$5 billion with a five-year term and the other for HK$3 billion with a 10-year term. The coupon rates were 2.95 per cent and 3.48 per cent, respectively.
It marked the URA’s return to the bond market for the first time since August 2024, when it raised HK$12 billion.
“The proceeds from the offering will primarily be used to fund capital expenditure on urban renewal projects, reaffirming our firm commitment to building a better Hong Kong through community-centric urban renewal,” URA Managing Director Donald Choi Wun-hing said.
The demand was so strong that it was oversubscribed three times, with the order book reaching HK$25 billion.
The issuance attracted a diverse range of investors, including banks, asset managers, insurance companies, hedge funds, official institutions, family offices and private banks, the authority said.
The URA has taken a number of measures recently to shore up its finances following two straight years of deficits.