MTR Corporation has successfully raised USD 3 billion through its inaugural dual-tranche subordinated perpetual securities offering—the largest of its kind ever issued by a corporate in Asia excluding Japan. The transaction, which comprised equal tranches of USD 1.5 billion with non-call periods of 5.5 and 10.5 years respectively, drew substantial interest from investors globally, underlining strong market confidence in the Corporation’s long-term prospects and role in Hong Kong’s infrastructure development.
The issuance, conducted under MTR’s USD 15 billion Debt Issuance Programme, was priced and launched on 16 June 2025 in Regulation S format. According to MTR, the offering attracted a final order book totalling USD 16 billion—more than five times the total issue size—indicating robust demand from a diverse range of institutional investors.
The securities have received the highest issue ratings ever assigned to a USD corporate subordinated perpetual offering, rated “A” by Standard & Poor’s and “A2” by Moody’s. These ratings reflect MTR’s strong operational track record and strategic importance to Hong Kong’s transport and infrastructure network.
“The successful issuance of these Securities underscores the strategic importance of MTR in the infrastructure development of Hong Kong, and the market confidence toward it. We are delighted with the overwhelming response from local and global institutional investors, including insurance companies, asset managers, banks, securities houses, sovereign wealth funds from both Asia and the Middle East, family offices and private banks, which reflects their confidence in MTR’s operational capabilities and market position, as well as in future railway infrastructure development undertaken for Hong Kong. Issuing through the global financial hub of Hong Kong, the transaction benefitted from Hong Kong’s status as an attractive investment opportunity for existing and new investors both locally and globally,” Michael Fitzgerald, Finance Director of MTR Corporation, commented on the transaction’s significance.
The dual-tranche structure offered two distinct maturities:
- The 5.5-year non-call tranche was priced at a 4.875% coupon,
- The 10.5-year non-call tranche was priced at a 5.625% coupon.
Both tranches qualify as 100% equity on MTR’s balance sheet and receive 50% equity credit from both Moody’s and S&P, bolstering the Corporation’s financial strength and flexibility for future investment.
“MTR is embarking on a new phase of railway investment, contributing to a more comprehensive and seamlessly connected low-carbon public transportation network for Hong Kong’s future. The transaction is the first step in our strategic addition of subordinated perpetual capital as a long-term component of our capital structure, which in turn strengthens our credit metrics and provides the Corporation with more flexibility in preparation to undertake major investments aimed at expanding the railway network and upgrading operating assets,” Mr Fitzgerald added.
The funds raised are expected to support MTR’s growing capital investment requirements, including network expansions, asset upgrades, and enhancements to service delivery as the Corporation continues its transition towards more sustainable, connected transport solutions.
The deal was led by Crédit Agricole CIB, HSBC, J.P. Morgan, Société Générale, and UBS, who acted as Joint Global Coordinators, Joint Bookrunners, and Joint Lead Managers. Additional Joint Bookrunners and Joint Lead Managers included ANZ, Bank of China, Barclays, DBS, Deutsche Bank, Mizuho, and Standard Chartered Bank.
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