CKI takes hybrid route to improve finances

Cheung Kong Infrastructure finds strong retail support for its $1 billion issue of perpetual securities.

Cheung Kong Infrastructure Holdings CKI made a successful move to reduce its gearing level earlier this week with the sale of $1 billion worth of perpetual hybrid securities. The capital-raising attracted strong demand from retail accounts, impressed by the familiarity of the name and by the unique nature of the securities.

CKI raised the cash through a special purpose vehicle SPV called PHBS Limited, which it fully guarantees. J.P. Morgan, which has a successful track record advising companies that issue hybrid securities, acted as sole bookrunner and lead manager for the deal. The US bank also provided a supportive bid from its private banking division.

The securities were re-offered at par and pay...

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