Bankers HSBC and Citibank will underwrite the Hong Kong government’s planned securitisation of infrastructure assets, that includes five tunnels and three bridges, according to a recent report.
The bonds are expected to raise some HK$6bn (US$770M) and will be backed by revenue from five toll-paying tunnels and the Lantau Link, which consists of the territory’s biggest bridge, Tsing Ma, together with the Ma Wan viaduct and the Kap Shui Mun bridge. The five tunnels are Aberdeen, Cross Harbour (which links Hong Kong to Kowloon), Lion Rock, Shing Mun and the Tseung Kwan O tunnels.
In a statement, the Hong Kong government said the bridges and tunnels bring annual revenues of US$128M. Of this US$77-90M would be scheduled as annually repayment of principal and interest sums. The funds raised are to be used as an alternative source of funding capital projects. Analysts commented that the government appointment of both HSBC and Citibank shows how keen it is to attract retail investors.
