20 May 2003
KCRC launches HK$500 million retail bond issue
The Kowloon-Canton Railway Corporation (KCRC) announced today the launch of its inaugural HK$500 million retail bond issue.
The bonds will be open for public subscription at more than 450 designated branches of 10 placing banks from 9am tomorrow (21 May 2003) to 12 noon on 30 May 2003.
Underwritten by HSBC, the bonds will be issued in two tranches – one with a tenor of five years and a coupon rate of 3%, and the other a tenor of 10 years and a coupon rate of 4.8%.
The subscription price of the bonds will be fixed on 3 June 2003, and the bonds will be issued on 6 June 2003. Applications must be made in the amount of HK$50,000 or its multiples.
The retail bond follows the successful issue of a HK$800 million 10-year institutional bond last Thursday (15 May 2003).
Speaking at today’s signing ceremony for the retail bond issue, Chairman Mr Michael Tien said, "This retail bond will be the first time for Hong Kong to have a 10-year issue available to the general public.
"Together with the HK$500 million 10-year bond issued to institutional investors last week, which was later increased to HK$800 million because of strong demand, we will be raising at least the first HK$1.3 billion out of the HK$30 billion we need. We will be watching the market closely, and will be coming back for more when conditions are right, " he said.
Mr Tien said KCRC would need to borrow HK$30 billion from now to about 2008 to finance the construction of the Sha Tin to Central Link and the Kowloon Southern Link.
Details of the retail bond issue are contained in the Offering Memorandum obtainable from tomorrow at the designated branches of the 10 placing banks. They are Bank of Communications (Hong Kong Branch), Bank of East Asia, Dah Sing Bank, Dao Heng Bank, Hang Seng Bank, HSBC, International Bank of Asia, Shanghai Commercial Bank, Standard Chartered Bank and Wing Lung Bank.
The Offering Memorandum will also be posted on the KCRC website (www.kcrc.com) during the subscription period.