MTR Corp announced that has issued its first ever USD 600 million 10-year Green Bond under the company’s USD 4 billion debt issuance programme.
Carrying a coupon rate of 2.5% per annum payable semi-annually with a maturity date of 2 November 2026, the Bond was priced at 99.675% face amount with an overall yield of 2.537%, 80 basis points over the benchmark 10-year US Treasury yield. The Bond is expected to be rated “AAA” and “Aa1” by Standard & Poor’s and Moody’s Investor Services respectively, both on par with the sovereign ratings of the Hong Kong SAR Government.
“As a low-carbon transport operator, we are pleased with the issuance of our first Green Bond which is a milestone for both our financial and environmental strategies. Utilising green finance in this way allows us to tap into a new investor base and provide cost effective financing to invest in environmentally friendly service and network enhancements
as envisaged in the Rail Gen 2.0 vision. We are also happy to be able to play a role in helping Hong Kong to develop as a regional green finance hub,” said Lincoln Leong, Chief Executive Officer of MTR Corporation.
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