MTR Corp raises €3B in record euro green bond sale

Hong Kong's MTR Corporation, the semi-privatised rail giant, has raised €3 billion (US$3.5 billion) in its first public euro-denominated green bond sale, marking its largest bond deal to date and the largest Asia ex-Japan non-sovereign euro green bond offering. The deal, announced on Thursday, consisted of three tranches of €1 billion each with maturities of eight, twelve, and twenty years. Coupons were set at 3.25% for the eight-year tranche, 3.625% for the twelve-year, and 4.125% for the twenty-year. Investor demand was robust, with the combined order book peaking at €10.2 billion, more than three times the total issue size, reflecting strong confidence in MTR's credit profile and its green financing strategy.

This latest bond sale is part of MTR's broader capital-raising efforts to fund a series of new rail projects in Hong Kong. It represents the third bond issuance by the corporation so far in 2026, bringing total bond proceeds for the year to HK$57.34 billion (US$7.35 billion). The proceeds from the green bonds will be used specifically for eligible green projects, likely including rail infrastructure expansions that meet environmental sustainability criteria. The strong oversubscription and favorable coupon rates indicate that MTR continues to attract significant interest from global investors, particularly those focused on ESG-compliant assets, while providing the company with long-term, cost-effective funding for its capital-intensive developments.