Baker & McKenzie recently advised Cheung Kong Infrastructure Holdings Limited (“CKI”) and its wholly-owned subsidiary, PHBS Limited (“PHBS”), on the issue and offering by PHBS of 6.625% guaranteed perpetual capital securities, which are issued in an initial aggregate principal amount of US$1 billion, and are guaranteed on a subordinated basis by CKI. The securities are listed on the Main Board of the Hong Kong Stock Exchange by way of selectively marketed debt securities, and are accepted for clearance through Euroclear and Clearstream.
The securities are perpetuals with no fixed final redemption date, and carry coupon deferral features. J.P.Morgan acted as the sole bookrunner and structuring adviser, and Deutsche Bank acted as the trustee, registrar, paying agent and transfer agent.
The Baker & McKenzie team was led by Hong Kong-based corporate partner Milton Cheng, assisted by senior corporate associate Edwin Li, and also included members of the Banking & Finance teams in Hong Kong and London. Commenting on the transaction, Milton Cheng said, “We are delighted to have had the opportunity to assist CKI on this hybrid securities transaction. The successful completion and strong support for the issue is a good testament to investors’ confidence in CKI. It will be interesting to see if this will lead to more of these types of hybrid securities deals by Asian companies seeking to raise financing.”
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