Cheung Kong perp

Cheung Kong tests market with first HK dollar corporate perpetual

Bankers are watching to see how Cheung Kong's deal fares and what the fair value of the perpetual is, given the lack of comparables.

Li Ka-shing’s Cheung Kong Holdings is set to test the market with the first Hong Kong dollar-denominated corporate perpetual. The company plans to issue a senior perpetual non-call-five benchmark and it concludes a two-day roadshow in Hong Kong today. DBS is the sole arranger.

The perpetual is similar to the S$730 million senior perpetual Cheung Kong issued in the Singapore dollar bond market, with one main difference an investor friendly one-time 100bp step-up at the fifth year if the bonds are not called, which was not present in the Sing dollar perp.

While the Sing dollar has appreciated this year, there are fewer expectations of currency appreciation...

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