Third Hong Kong runway passes finance hurdle

The Hong Kong Airport Authority has released a report on the detailed funding study for a three-runway system (3RS) after it was accepted in principle by its board.

HSBC bank was appointed by the AA as financial advisor last year to study the detailed funding plan for the 3RS project. It analysed different debt structures and identified suitable financial instruments.

The report concluded that AA has strong access to debt markets and is confident that it will be able to raise up to HK$69 billion on reasonable terms, and that the recommended detailed funding plan is robust and practicable.

Funding will be provided through retaining AA’s operating surplus, levying an airport construction fee on passengers departing from HKIA and borrowing in the market.