SUN Hung Kai Properties (SHKP) has increased its Hong Kong dollar floating-rate note issue from $500 million to $650 million after strong investor demand.
Professional and institutional investors are said to have been lured by the strong SHKP name and rarity of the issue.
This is only the third Hong Kong corporate to tap the Hong Kong dollar market through a floating-rate issue in recent time.
Tatsuro Higashi, chief manager of syndicate and new issues for Nomura International Hong Kong, said: ''The Hong Kong dollar bond market does not have a lot of Hong Kong corporates using floating-rate notes proper, so this issue has a rarity value.
''. . . I hope the strong response to this issue might induce more Hong Kong corporates to follow the same fund-raising path.'' It is expected the notes will bear interest from January 28 at an annual rate equal to 88 basis points over the six-month Hong Kong Interbank Offered Rate.
The interest will be paid semi-annually in arrears on dates falling in July and January of each year.