Hong Kong Land debuts Singapore dollar offering.

Hong Kong property giant brings Singapore''s largest foreign rated bond deal.

Hong Kong Land Holdings drew strong support for its debutante Singapore dollar bond on Thursday (September 22), pricing an upsized S$700 million ($416 million) offering. Joint leads and underwriters HSBC and DBS opted to accelerate pricing once the book was oversubscribed in order to avoid any adverse effects on the global bond markets resulting from Hurricane Rita, which is expected to hit the US on Saturday.

The A2 rated deal represents the largest foreign rated issue in Singapore dollars, as well as the largest property issue.

The deal, launched via special purpose vehicle Hong Kong Land Treasury, offers two tranches of five and 10 years.

The five-year tranche was sized at S$325 million and priced at par on a semi-annual coupon of 3.01%. The 10-year tranche was sized at S$375 million and priced at par with a semi-annual coupon of 3.65%

The deal closed with just under 50 accounts. All accounts were Singapore-based.

Insurers made up the lion's share of the 10-year tranche accounting for almost 70% of the total, Asset managers made up the difference. The five-year tranche, a tenor more popular with Singapore investors, was split evenly among asset managers, banks, insurers and private banks.

Hong Kong Land Treasury is a wholly owned subsidiary of Hong Kong Land, a leading property investment group in Hong Kong. Hong Kong Land owns a large portion of the high quality commercial real estate in Hong Kong's Central District, the city's primary business quarter, with five million square footage of prime office and retail space.

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