The Hong Kong government announced to launch the sale of 6 billion Hong Kong dollars (769 million US dollars) in bonds, based on revenues from government-owned tunnels and bridges Monday in Hong Kong.

The net proceeds of this securitization will flow into the Capital Works Reserve Fund to help finance infrastructure projects,according to the government.

Speaking at the launch ceremony, Secretary for Financial Services and the Treasury of Hong Kong government Frederick Ma said it is the largest securitization bond offering in Hong Kong and in the region. It will be delivered through the largest retaildistribution network established for a bond issue in Hong Kong, headded.

More than 800 branches of 23 placing banks will be involved, along with all interested brokers that may participate through theHong Kong Stock Exchange's Central Clearing and Settlement System.

Three credit-rating agencies have given a thumbs-up to the launch.

There are three tranches of retail bonds, with maturities of three (2.75 percent), five (3.6 percent) and seven (4.28 percent) years. The minimum denomination is 50,000 Hong Kong dollars (6,410US dollars). The institutional offerings will comprise two tranches of Notes, one with a one-year tenor and the other with a 12-year legal final maturity.

Source: Xinhua