Hongkong Land

HK Land eurobond to raise US$300m

PUBLISHED : Saturday, 17 April, 2004, 12:00am
UPDATED : Saturday, 17 April, 2004, 12:00am

Hongkong Land Holdings, the biggest landlord in Central, will launch a US$300 million 10-year eurobond to refinance and extend the maturity of the group's debt.

The money raised is also for other general corporate purposes.

The offering will start after the completion of a roadshow, which will begin in Hong Kong next week, according to the company.

HSBC Holdings and JP Morgan had been mandated as joint book runners on the coming offering, the company said.

Further details will be released on completion of the offering.

The mandate came as Standard & Poor's Ratings Services assigned its BBB-plus rating to the proposed 10-year fixed-rate eurobonds due 2014. The rating reflects the company's leading position in Hong Kong's office-leasing market, based on its above-average quality assets, strong liquidity and good liability management.

These factors are tempered by the company's relatively weak debt protection measures - with a ratio of funds from operations to net debt of 10 per cent last year.

It also reflected the geographical concentration of the company's operations.

The bonds are unconditionally and irrevocably guaranteed by Hongkong Land Co, which is wholly owned by Hongkong Land Holdings.

Hongkong Land owns and manages about five million sq ft of prime office and retail space in the heart of the Central business district.

Hongkong Land is a member of the Jardine Matheson Group. The company's shares are listed in London, Singapore and Bermuda.