Cathay Pacific issues Singapore dollar bond
23 Feb 2005
Cathay Pacific Airways today announced the issue of S$225 million (HK$1.07 billion) five-year fixed rate notes in Singapore. Strong interest from institutional investors meant the issue was oversubscribed by about 1.7 times, indicating the market’s confidence in the prospects of the airline.
The five-year fixed-rate note issue bears a coupon price of 3.0575 percent a year, payable semi-annually. The notes were issued by Cathay Pacific’s wholly owned subsidiary, CPA Finance (Cayman) Limited and fully guaranteed by the airline. It was launched jointly by DBS Bank and Standard Chartered Bank. Application has been made to have the bonds listed on the Singapore Exchange Securities Trading Limited.
Cathay Pacific Airways General Manager Corporate Finance Keith Fung said: “The Singapore Dollar bond issue represents a diversification of funding opportunities in a new market to Cathay Pacific and we are pleased with the strong demand from investors in this financing which reflects confidence in our credit.”