PEREGRINE Derivatives yesterday issued two-year 120 million covered warrants in Sun Hung Kai Properties at 82 cents each after the market closed. The strike price was $36.75, placing the issue on a premium of 21.5 per cent and a gearing ratio of 4.6. The conversion ratio is one for 10. Peregrine said the implied volatility of the issue was 39 per cent. A spokesman for the merchant bank said: ''The issue is relatively small and it has been heavily over-subscribed.'' The board lot for the Peregrine issue is 10,000. Expiry is expected to be dated in May 1995. There are now two covered warrants in Sun Kung Kai Properties, which were trading in April on implied volatilities in the region of 50 per cent to 70 per cent, across periods of one month, three months and one year. The last covered warrant issued, in early March, was from Robert Fleming of the United Kingdom in China Light and Power. The initiative from Peregrine has prompted Sun Hung Kai Properties to issue a notice stating they have nothing to do with the issue. This is the first time the management behind the company which is the subject of an issue have issued such a notice. The statement said: ''The directors of Sun Hung Kai Properties wish to announce that the proposed issue by Peregrine Derivatives of 120 million call warrants in respect of shares in the company, is not connected with the company, its directors or the Kwok family.''