Credit-default swap protection on Hong Kong's Hutchison Whampoa widened last week on the back of an impending USD1 billion bond offering. Five-year protection jumped to 210-220 basis points early last week from 195-210bps, according to Sonia Lee, v.p. and Asian credit trader at Credit Lyonnais in Hong Kong. Another trader noted that over USD50 million of default-swaps was traded around the announcement with a possible USD50 million more executed directly with clients. Typically, Hutchison trades about USD30 million per week, noted traders.
Market officials said the bond will likely be used to refinance loans stemming from its purchase of Dutch retailer Kruidvat Group last month. Deutsche Bank, HSBC and JPMorgan received the mandate for the issuance, according to market reports.
