Cathay Pacific Airways Ltd. sold its first dollar bonds in more than two decades, seizing on debt investors’ willingness to fund pandemic-ravaged airlines as the industry’s prospects improve.
Hong Kong’s flagship carrier sold a $650 million bond due in 2026, according to a term sheet issued late Monday that was seen by The Wall Street Journal. The bond was issued with a yield of 4.875%, lower than initial guidance of 5.2%, pointing to robust demand.from the Hong Kong government and other investors, including top shareholders Swire Pacific Ltd. , Air China Ltd. and Qatar Airways Co.
Cathay swung to a net loss of HK$21.65 billion in 2020. Analysts on average expect its loss to narrow to about HK$8.5 billion in 2021, according to estimates compiled by FactSet, and for it to return to profitability next year.