A subsidiary of Cathay Pacific (CX, Hong Kong International) has applied to the Hong Kong Stock Exchange (HKEX) to list a USD2.5 billion medium-term note programme under which it may issue notes by way of debt issues to professional investors. The airline lodged its application on August 28 and says the proceeds will be used for working capital and general corporate purposes.
Cathay's wholly-owned and fully-guaranteed financing vehicle, Cathay Pacific MTN Financing (HK) Limited (CPMFHK), made the application which, similar to a 2023 medium term note programme, allows the company to issue notes to professional investors for a 12-month period starting from August 29.
As of August 28, CPMFHK has the following outstanding debt securities on issue:
- HKD200 million Hong Kong dollars (USD25,654,675) in notes paying 5% per annum and maturing this year;
- USD650 million in notes paying 4.875% per annum and maturing in 2026;
- HKD625 million (USD80,170,860) in notes paying 5% per annum and maturing in 2027;
- HKD200 million in notes paying 4.9% per annum and maturing in 2027;
- HKD300 million (USD38,482,012) in notes paying 4.9% per annum and maturing in 2027;
- HKD200 million in notes paying 4.8% per annum and maturing in 2027; and
- HKD500 million (USD64,136,688) in notes paying 5.05% per annum and maturing in 2029.
The Hongkong and Shanghai Banking Corporation Limited (HSBC Bank) arranged the listing. Dealers include the Bank of China (Hong Kong), Barclays, BNP Paribas, DBS Bank Ltd, HSBC Bank, Morgan Stanley, OCBA, Standard Chartered Bank, and UBS Bank. Slaughter and May and Allen Overy Shearman Sterling advised Cathay Pacific on the issue.
Based on the closing price of its ordinary shares on June 28, 2024, Cathay Pacific had a market capitalisation of approximately HKD51.44 billion (USD6.6 billion). Cathay's 178 aircraft fly to 88 airports in 32 countries.
