Cathay raises HK$2.08 billion after tapping public bond market for first time

Company says bond issuance is biggest of its kind by locally based, non-public sector company

Cathay Pacific Airways has raised HK$2.08 billion (US$265.4 million) by selling Hong Kong dollar-denominated bonds to boost its working capital, tapping the public bond market for the first time.

Hong Kong’s flag carrier said on Friday that the bond issuance was the biggest of its kind by a locally based, non-public sector company.

The three-year bonds, which carried a fixed interest rate of 3.78 per cent, were sold mainly to professional investors such as asset managers, banks and private banks.

“By taking part in and supporting the development of its financial markets, we’re playing a part in reinforcing Hong Kong’s position as a leading international financial centre,” Rebecca Sharpe, Cathay Group’s chief financial officer, said.

She said the airline was committed to investing HK$100 billion in a new fleet, cabins, lounges and digital innovation, which would help strengthen Hong Kong’s role as an international aviation hub.

Cathay said it raised funds as part of its financing activities every year by taking into consideration a range of factors such as its overall funding needs, existing economic environment, fund source options and pricing.