Hong Kong’s MTR Corp raises record A$2 billion in first Australian dollar green bond sale
‘We are delighted with the very positive response from investors,’ MTR finance director says
Hong Kong rail giant the MTR Corporation has raised a record A$2 billion (US$1.4 billion) in its first-ever issuance of Australian dollar-denominated green bonds 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 Corp said on Tuesday.
The offering represented the largest-ever Australian dollar corporate green bond issuance and the largest dual-tranche corporate bond issuance 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 Corp 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.”
Green bonds are fixed-income financial products used to raise capital for environmentally sustainable infrastructure projects and business activities.