Hongkong Land brings aggressive bond debut

The sheer scale and strength of demand for what started out as a $300 million transaction will have surprised even the lead managers and borrower.

Jackie Horne

April 27, 2001

Having started roadshows with the intention of pricing a $300 million 10 year deal at a 10bp to 15bp premium to Hutchison Whampoa, Hongkong Land has ended them with a $600 million deal 4bp through Hutch and without a new issue premium. For those who doubted the wisdom or veracity of opting for such an aggressive benchmark, a final order book just shy of $2.5 billion would seem to suggest otherwise.

Relative to initial issue size, Hongkong Land has attracted the largest order book so far this year, with the transaction closing yesterday (Wednesday), eight times oversubscribed. Led by Goldman Sachs, HSBC and JPMorgan, the A-/A3 rated credit priced its deal at New York's open on an issue price of 99.054 and coupon of 7% to yield 7.134%, or 195bp over Treasuries.

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