Leading international law firm Clifford Chance has advised DBS Bank Limited as sole lead manager and bookrunner on the first Hong Kong dollar-denominated corporate perpetual. The HK$1 billion, 5.25% guaranteed senior perpetual securities were issued by Cheung Kong Bond Securities (02) Limited and guaranteed by Cheung Kong (Holdings) Limited.
Hong Kong capital markets partner Matt Fairclough said, “We were very pleased to advise DBS on this closely watched deal by many in the industry. Companies in the Cheung Kong group have been active in the hybrids market for some time now, with various structures and rankings being explored. This is the second time that this particular credit has accessed the senior perpetuals market, and the first time that we have seen an issue in Hong Kong dollars. Senior ranking perpetual securities give the benefit of equity accounting treatment for issuers, combined with an upside to investors of sitting alongside senior debtholders, which of course has pricing advantages.”
Matt, along with Singapore counsel Wern Sern Bin were assisted by Hong Kong associate Michael Weaver and Singapore associates Ryan Lin and Chrystle Kuek.
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