2 June 2003
KCRC retail bonds well received by investors
The Kowloon-Canton Railway Corporation (KCRC) today announced that the total amount of applications for KCRC retail bonds reached HK$1.28 billion, 2.5 times the original issue size.
A spokesman for the Corporation said because of this strong demand and the Corporation’s financing requirements, KCRC had decided to double the issue size from HK$500 million to HK$1 billion.
Applications for the retail bonds closed last Friday (30 May 2003). 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 spokesman said, "The 10-year bonds are more popular and took up about 70% of all applications.
"The enthusiastic response from investors is a clear vote of confidence in KCRC’s long-term future. It also signifies that there is strong potential for the development of Hong Kong’s long-term debt market."
Together with the HK$800 million 10-year bonds issued to institutional investors on 15 May 2003, the Corporation has successfully raised HK$1.8 billion for its future capital projects.
Because of the success of this exercise, the Corporation will seriously consider coming back to the local market for more," the spokesman added.
The subscription price of the bonds will be fixed tomorrow (3 June 2003) and the bonds issued on Friday (6 June 2003).