Cathay Pacific Unit Seeks $2.5 Billion Debt Listing

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Cathay Pacific MTN Financing (HK) Limited (CPMFHK), a fully-owned subsidiary of Cathay Pacific, has applied to the Hong Kong Stock Exchange (HKEX) to list a USD2.5 billion medium-term note (MTN) programme. Submitted on August 28, the application will enable CPMFHK to issue notes to professional investors over a 12-month period starting August 29. The proceeds from this issuance will be allocated for working capital and general corporate needs, reported ch-aviation.com.

The proposed MTN programme is similar to a 2023 initiative and is designed to provide Cathay Pacific with necessary financial resources. As of August 28, CPMFHK’s current debt portfolio includes:

  • HKD200 million (USD25.7 million) in notes with a 5% annual interest rate, maturing this year.
  • USD650 million in notes with a 4.875% annual interest rate, maturing in 2026.
  • HKD625 million (USD80.2 million) in notes with a 5% annual interest rate, maturing in 2027.
  • HKD200 million in notes with a 4.9% annual interest rate, maturing in 2027.
  • HKD300 million (USD38.5 million) in notes with a 4.9% annual interest rate, maturing in 2027.
  • HKD200 million in notes with a 4.8% annual interest rate, maturing in 2027.
  • HKD500 million (USD64.1 million) in notes with a 5.05% annual interest rate, maturing in 2029.

The listing arrangement is handled by The Hongkong and Shanghai Banking Corporation Limited (HSBC Bank), with notable dealers including Bank of China (Hong Kong), Barclays, BNP Paribas, DBS Bank Ltd, HSBC Bank, Morgan Stanley, OCBC, Standard Chartered Bank, and UBS Bank. Legal counsel for the issue is provided by Slaughter and May, alongside Allen & Overy Shearman Sterling.

As of June 28, 2024, Cathay Pacific had a market capitalization of approximately HKD51.44 billion (USD6.6 billion). The airline operates a fleet of 178 aircraft, serving 88 airports across 32 countries. This new MTN programme is expected to bolster Cathay Pacific’s financial stability, supporting its strategic and operational goals.

Related news: https://airguide.info/?s=Cathay+Pacific

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com

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