Hongkong Land priced Asia’s first 15-year security this year in the early hours of Thursday morning last week. The Hong Kong developer had being absent from the market since 2004, and with no other longer-dated paper this year, the bonds were very well received.
“By going to that maturity profile they were taking a bold and innovative step and we had high confidence that the market would be fine with a 15-year,” explained one source.
The $600 million Reg-S bonds pay a 4.5% semi-annual coupon and were reoffered at 98.765 to yield 4.615%, which is equivalent to 215bp over 10-year Treasuries.
As suggested by the fact that the spread was quoted against...