Hong Kong's Urban Renewal Authority has raised HK$8 billion through a bond sale to fund urban renewal projects. The authority sold two tranches of bonds amid strong investor demand. This marks its return to the bond market since August 2024.
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 a coupon rate of 2.95 per cent, and the other for HK$3 billion with a 10-year term and a coupon rate of 3.48 per cent.
It marked the URA’s return to the bond market for the first time since August 2024, when it raised HK$12 billion. 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 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 URA has taken a number of measures recently to shore up its finances following two straight years of deficits.