Cathay Pacific Airways has priced its inaugural public Hong Kong dollar bond at HK$2.08 billion with a three-year tenor and 3.78 percent fixed interest rate. The issuance marks the largest of its kind by a locally based, non-public sector company in Hong Kong.
Proceeds will fund working capital and general corporate purposes, bolstering the airline’s liquidity amid ongoing operational demands in the aviation sector. Sold primarily to professional investors including asset managers, banks, and private banks, the bond achieved strong demand in a record-hot Hong Kong dollar funding market.
This debut falls under Cathay’s existing US$2.5 billion Medium Term Note Programme. The carrier has applied to The Stock Exchange of Hong Kong for listing and trading permission.
Issued on April 24, 2026, the bond reflects Cathay’s strategic move to diversify funding sources locally, equivalent to US$265.4 million. It aligns with surging Hong Kong dollar bond activity, highlighted by parallel large issuances from firms like MTR Corp totaling HK$18.9 billion in green bonds.
For Cathay, this enhances financial flexibility critical for fleet investments, network expansion, and recovery from pandemic-era challenges in air transport operations.