Bulletin: Hong Kong's Support Backs URA's Upsizing Of MTN Program

HONG KONG (S&P Global Ratings) June 25, 2024--Urban Renewal Authority?s (URA) upsizing of its medium-term notes (MTN) program to US$3 billion from US$1 billion will not affect our 'AA+' long-term issue rating on the program. The rating on the program is the same as the long-term issuer rating on URA, a statutory body that the Hong Kong government fully owns. URA upsized the program to facilitate fund raising for larger project redevelopment. This initiative addresses the increasing number of aged buildings in Hong Kong. The upsizing came after the Hong Kong government gave approval for the authority to raise its borrowing limit to HK$25 billion from HK$6 billion in 2023. URA will likely commence its fund raising in fiscal 2025

...June 25, 2024 HONG KONG (S&P Global Ratings) June 25, 2024--Urban Renewal Authority's (URA) upsizing of its medium-term notes (MTN) program to US$3 billion from US$1 billion will not affect our '##+' long-term issue rating on the program. The rating on the program is the same as the long-term issuer rating on URA, a statutory body that the Hong Kong government fully owns. URA upsized the program to facilitate fund raising for larger project redevelopment. This initiative addresses the increasing number of aged buildings in Hong Kong. The upsizing came after the Hong Kong government gave approval for the authority to raise its borrowing limit to HK$25 billion from HK$6 billion in 2023. URA will likely commence its fund raising in fiscal 2025 (year ending March 31) as it enters the acquisition phase of larger scale projects. The authority could be required to utilize more of the upsized program to support its urban renewal mandates should the Hong Kong property market remain weak. We believe...

Bulletin