Cathay Pacific (CX, Hong Kong International) has listed a new USD2.5 billion medium-term notes (MTN) programme on Hong Kong bourse (SEHK) to raise fresh working capital.
In a notice to investors, the Hong Kong-based airline announced its wholly-owned and fully-guaranteed subsidiary, Cathay Pacific MTN Financing (HK) Limited (CPMFHK), applied to the SEHK for the listing of its USD2.5 billion MTN programme, which allows the company to issue notes through debt issues to professional investors only within 12 months starting from August 18, 2023. The programme listing was expected to have become effective on August 21, 2023.
According to the company, the net proceeds from each issue of notes would be applied by CPMFHK for on-lending to the Cathay Pacific Group for working capital and general corporate purposes. CPMFHK is a financing vehicle whose sole business is raising debt and on-lending it to the Group.
The Hongkong and Shanghai Banking Corporation Limited arranged the listing. Dealers included nine banks, including the Bank of China (Hong Kong), Barclays Bank PLC, BNP Paribas, DBS Bank Ltd., The Hongkong and Shanghai Banking Corporation Limited, Morgan Stanley & Co. International plc, Oversea-Chinese Banking Corporation Limited, Standard Chartered Bank, and UBS AG Hong Kong Branch.
Cathay Pacific and its substantial shareholders, Swire Group and Air China (CA, Beijing Capital), are listed on the SEHK. Based on the closing price of its shares on June 30, 2023, Cathay Pacific had a market capitalisation of about HKD51.562 billion Hong Kong dollars (USD6.589 billion).
