Airport Authority readies first dollar benchmark

The Hong Kong International Airport (HKIA) is set to launch its first fixed rate transaction with plans for a 10-year strategic benchmark. Timing could hardly be better for the A+ sovereign rated borrower given the complete dearth of quasi sovereign or corporate issuance from Hong Kong, the tight trading levels of outstanding comparables and the low interest rate environment. Mandate and launch is expected to be fairly rapid and the deal is likely to be either a two or three hander.