{"id":123944,"date":"2021-05-06T05:08:08","date_gmt":"2021-05-06T05:08:08","guid":{"rendered":"https:\/\/precoinnews.com\/?p=123944"},"modified":"2021-05-06T05:08:08","modified_gmt":"2021-05-06T05:08:08","slug":"cathay-pacific-tests-investor-appetite-for-first-u-s-dollar-bond-in-25-years","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/cathay-pacific-tests-investor-appetite-for-first-u-s-dollar-bond-in-25-years\/","title":{"rendered":"Cathay Pacific tests investor appetite for first U.S. dollar bond in 25 years"},"content":{"rendered":"
HONG KONG, May 6 (Reuters) – Hong Kong\u2019s Cathay Pacific Airways Ltd is considering issuing its first U.S. dollar bond in nearly 25 years, according to a term sheet seen by Reuters.<\/p>\n
The COVID-19 pandemic-ravaged airline will begin speaking to investors on Thursday to determine if a deal goes ahead for a U.S. dollar Reg S bond, which means the debt cannot be sold to U.S.-based investors.<\/p>\n
The size of the issue is yet to be determined and will be set based on the demand for the bonds, according to a person familiar with the matter.<\/p>\n
A final decision would be made on the issuance \u2018subject to market conditions\u2019, according to the term sheet.<\/p>\n
Cathay did not immediately respond to an emailed request for comment.<\/p>\n
The airline contemplated a U.S. dollar debt deal in 2019 – which would have been its first since 1996 \u2013 at the peak of the pro-democracy protests in Hong Kong but put it on hold because of the price demanded by investors.<\/p>\n
Cathay shares fell 2.6% in Hong Kong trading on Thursday morning to HK$6.50, compared to the recent peak of HK$7.89 on March 18. The broader Hong Kong stock market was flat.<\/p>\n
The carrier has traditionally issued nearly all of its debt in Hong Kong dollars.<\/p>\n
In January it issued HK$6.74 billion ($869.51 million) of convertible bonds in Hong Kong dollars to shore up liquidity which prompted its shares to record their worst daily decline in more than 12 years..<\/p>\n
Cathay said in March it was focused on preserving cash after posting a record annual loss of HK$21.65 billion, caused by a travel downturn, restructuring costs and fleet writedowns.<\/p>\n
Its passenger numbers fell by 98.7% compared with a year earlier, though cargo carriage was down by a smaller 32.3%.<\/p>\n