ExclusiveHKU eyes up to US$385 million bond to fund Northern Metropolis expansion
Roadshows arranged by bankers including HSBC Holdings will draw banks, insurers, pension funds and asset managers in the coming days
The University of Hong Kong (HKU) will begin a roadshow this week to gauge investor interest in a landmark bond programme that could raise up to HK$3 billion (US$385 million) to fund its planned expansion in the Northern Metropolis, according to people familiar with the matter.
Scores of banks, insurance and pension companies and fund managers were invited to attend roadshows arranged by bankers including HSBC Holdings over the coming days, one source told the South China Morning Post on Monday.
The proposed deal involves a Hong Kong dollar-denominated bond programme with maturities of between five and 10 years. Pricing has yet to be decided, but the university is targeting proceeds of between HK$2 billion and HK$3 billion, the source added.
It remained unclear whether the offering would be limited to institutional investors through a private placement or include tranches for retail investors, another source said.
The roadshow does not necessarily signal an imminent issuance, but marks an initial step to familiarise investors with HKU as a first-time borrower and lay the groundwork for a future deal.
Market participants said the offering would be notable as the first major bond issuance linked to financing projects in the Northern Metropolis, and a rare example of a Hong Kong university tapping debt markets.