Crédit Agricole CIB acts as Joint Global Coordinator on MTR's inaugural USD subordinated perpetual hybrid securities issuance

This transaction comprises two tranches, including a non-call 5.5-year tranche of US$1.5 billion and a non-call 10.5-year tranche of US$1.5 billion.

MTR Corporation (MTR), the majority government-owned public transport operator in Hong Kong, also operating in other regions, has priced a US$3 billion issuance of subordinated perpetual hybrid securities on 16 June 2025. The transaction was the largest USD corporate subordinated perpetual securities in Asia ex. Japan, underlining global investor confidence in MTR and the sector’s prospect in Hong Kong.

Hybrid securities are securities that feature both debt (borrowing money from an external source) and equity characteristics (raising money by selling shares). One common example of hybrid securities is subordinated perpetual bonds, in which investors that hold a higher seniority of the bond gets paid out first.

Crédit Agricole CIB acted as Joint Global Coordinator and the sole bank responsible for deal structuring and ratings process on this landmark transaction. The securities are rated “A” by S&P Global Ratings and “A2” by Moody’s Ratings, which are the highest issue ratings ever achieved for a USD subordinated perpetual issuance globally.

Proceeds raised will be used to for general operational purposes and continue to support MTR in future infrastructure projects. The transaction is the first milestone in MTR’s addition of subordinated perpetual securities as strategic component to their long-term capital structure, which will allow the company to flexibly manage future major infrastructure investments and asset replacement.

This is the third bond mandate Crédit Agricole CIB received from MTR, after supporting its US$3 billion public bond issuance in March 2025 and raising 4.5 billion yuan through a dim sum bond in September 2024.

It also represents the Bank’s third corporate hybrid mandate from Hong Kong in 2025, following hybrid transactions executed for CLP Power Hong Kong and Hysan Development, a Hong Kong property investment, management and development company. Crédit Agricole CIB is the only bank responsible for ratings workstream on all three transactions including the MTR’s, reflecting our client's confidence in our expertise in structuring and ratings advice.