BARCLAYS de Zoete Wedd has issued two-year covered warrants on Hongkong Land, the second issue of derivatives in a week and the fourth this year.
The successful issue of the warrants marks the third time Hongkong Land shares have been the subject of a derivative issue. Other issues have come from Nan Fung and Sun Hung Kai Securities.
The merchant bank issued 50 million call warrants on Hongkong Land at $2.80 each with an at-the-money strike price of $14.10. Expiry is on February 24, 1995.
This places the issue on a 19.9 per cent premium and a gearing of 5.04, where the implied volatility has been raised to 41.6 per cent.
A spokesman for the merchant bank said: ''The issue has been well received and it shows there is a growing appetite for these instruments even in uncertain market conditions.'' On Wednesday, Robert Fleming issued 25 million one-for-one call warrants on electricity utility China Light and Power.
These two-year warrants went for $7.55 each with a strike price of $36. This placed the premium at 21 per cent and the gearing at 4.76 times. The expiry date is February 23, 1995.