Clifford Chance

Clifford Chance advises Urban Renewal Authority on its HK$12 billion Hong Kong dollar bond issuance

Global law firm Clifford Chance has advised the Urban Renewal Authority (URA) on its triple-tranche HK$12 billion senior bonds offering under its Medium-Term Note (MTN) Programme (the Offering). This Offering is one of the largest Hong Kong dollar-denominated note issuances to date and marks URA’s return to the Hong Kong Dollar public institutional bond market since 2009.

The Offering comprises three tranches: HK$4 billion at 3.35% over three years, HK$5 billion at 3.45% over five years, and HK$3 billion at 3.55% over 10 years. The proceeds from the offering will fund the capital expenditure on urban renewal projects and for general corporate purposes.

Lead partner Mark Chan said, " We are honoured to have advised the Urban Renewal Authority on this landmark HK$12 billion senior bonds offering. This transaction not only represents one of the largest Hong Kong dollar-denominated issuances to date but also underscores the robust liquidity of the HKD market and the strong positive sentiment from investors, as evidenced by the offering being significantly oversubscribed. It is a testament to the confidence in URA's vision and the resilience of the Hong Kong financial market."

Mark was supported by senior associate George Mok and associate Christine Chan.

The URA was established in May 2001 under the Urban Renewal Authority Ordinance as the statutory body to undertake, encourage, promote and facilitate urban renewal of Hong Kong, with a view to addressing the problem of urban decay and improving the living conditions of residents in old districts.

This transaction continues Clifford Chance's long track record of advising on major bond issuances in Hong Kong capital markets, including the Hong Kong Mortgage Corporation's (HKMC) triple-tranche bond issuance, HKMC's inaugural dual-tranche social bonds issuance, and Hong Kong's first infrastructure-backed CLO sponsored by HKMC.