Li & Fung sells $400 million bond amid tough markets

The Hong Kong bluechip leans on anchor demand following a non-deal roadshow to print a 10-year deal, shrugging off a significant widening in spreads during the bookbuilding.

Li Fung, the Hong Kong trading and sourcing company, has raised $400 million from a 10-year offering -- its second US dollar bond ever. Arguably, the company could have chosen a betting timing for the transaction given the deterioration and heightened volatility in global markets over the past week. When Li Fung announced the bond yesterday morning, Asian investment grade spreads were about 5bp-10bp wider than the previous day and during the marketing they widened another 10bp-15bp.

However, the company had received strong interest from high-quality real money accounts on the back of a non-deal roadshow in Singapore, Hong Kong and London on Monday and Tuesday this week, and didn't want to pass on the...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222