Cheung Kong thrives despite 'weak' structure

Hong Kong central 230px
By Narae Kim
23 Feb 2016

Cheung Kong Infrastructure Holdings (CKI) made a strong comeback to the dollar hybrid bond market on Monday with a perpetual non-call five. Despite the tight pricing and a structure that some considered weak, investors were keen to participate thanks to the borrower’s credentials and a lack of supply in the primary market.

CKI decided to issue a new hybrid bond on Monday as the A- rated issuer could save costs substantially by replacing its outstanding $1bn 6.625% PNC5, which was sold in September 2010, with a new one. As this was the purpose behind its transaction, the company ...

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