Li & Fung uses coupon step-up to tackle downgrade risks

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By Alice Huang
12 Aug 2020

Hong Kong-based Li & Fung used a coupon step-up in case of a rating downgrade to attract investors to its $300m bond on Tuesday, as it gears up for a big hit to its business this year as a result of Covid-19.

The supply chain manager has been facing a tough time recently. S&P Global Ratings expects the pandemic to “significantly hit the company’s core supply-chain services in 2020”, it said in a note in March.

Even before the outbreak, Li & Fung’s turnover and core operating profit had fallen ...

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