Sun Hung Kai Properties saves with innovative fixed to FRN bond while keeping investors sweet

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Sun Hung Kai Properties saves with innovative fixed to FRN bond while keeping investors sweet

Sun Hung Kai Properties

Sun Hung Kai Properties sold a $400m 10 year non call five bond on Tuesday, its first issue for more than a year. The innovative structure included a floating rate step-up that saved 100bp on each coupon payment, but bankers away from the deal have warned the investors have mispriced the extension risk, writes Virginia Furness.

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