Hongkong Electric pulls dollar bond amid Asian stock rout

Hongkong Electric becomes the second Asian issuer to pull a US dollar bond this week as investors refuse to take on more risk.

Li Ka-shing’s Hongkong Electric Finance was forced to pull its 10-year US dollar benchmark bond on Tuesday night as investors shied away from the deal amid simmering geopolitical tensions on the Korean peninsula and a spike in risk aversion.

The bond was marketed to investors with a guidance at the 10-year Treasuries plus 140bp mark on Tuesday morning. The Reg S-registered bonds were to be issued off the company’s medium-term note programme and were expected to price as early as Tuesday. HSBC, Royal Bank of Scotland and Standard Chartered were joint bookrunners.

At the outset, it looked as though the deal was poised to cross the finish line. Based on the...

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