Cathay Pacific (CX, Hong Kong International) is planning to raise about HKD2 billion Hong Kong dollars (USD255.4 million) through a Hong Kong dollar-denominated bond issuance, Reuters reported citing sources and a term sheet.

The airline is considering a one- or two-tranche fixed-rate offering with maturities of three or five years, or both. A global investor call was scheduled for April 21, 2026, and the transaction could launch as early as the following day, although the term sheet did not disclose a final deal size.

HSBC is the arranger of Cathay Pacific's medium-term note programme, while dealers reportedly listed in the offering circular include Bank of China (Hong Kong), Barclays, BNP Paribas, DBS, Morgan Stanley, OCBC, Standard Chartered, and UBS.

The fundraising effort coincides with rising jet fuel costs linked to the Middle East conflict and uncertainty over the Strait of Hormuz. The airline said earlier in April that it would cut some flights from mid-May to end-June due to higher fuel prices.

ch-aviation has reached out to Cathay Pacific for comment.