Cathay Pacific Airways Ltd has shelved plans for its first U.S. dollar...
) has shelved plans for its first U.S. dollar debt deal in 23 years, the airline said on Friday, after sources told Reuters that global investors had baulked at the pricing due to civil unrest in Hong Kong.
The airline, the biggest corporate casualty of widespread anti-government protests in the Asian financial hub, on Friday lowered its second-half profit expectations, citing “incredibly challenging” conditions in its home market. It would have been the first U.S. dollar debt deal for Cathay since 1996 and had been touted as a landmark transaction for the airline given all of its debt is denominated in Hong Kong dollars.
However, investors demanded a higher price of at least 300 basis points over U.S. Treasuries, which made the deal more expensive for Cathay, said the sources, who were not authorized to speak publicly about the matter.A Cathay spokesman on Friday said the Hong Kong dollar private placement market was providing more funding opportunities and a debt issuance in that market was completed last month.
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