Hopewell Highway Infrastructure Ltd., controlled by Hong Kong billionaire Gordon Wu, will sell its second yuan-denominated bond in Hong Kong as credit conditions tighten in China.
The company hired Bank of China (Hong Kong) Ltd. for the sale, and the proceeds will be used to develop its Western Delta Route project and fund new investments, according to an e-mailed statement today.
The operator of expressways in China’s Pearl River Delta sold 1.38 billion yuan ($212 million) of bonds with a coupon of 2.98 percent in July 2010, according to data compiled by Bloomberg, the first sale by a non-bank Hong Kong company. China’s central bank this month raised the amount of deposits lenders must set aside to the highest in at least two decades.
“In light of the tightening of the credit market” in China, the sale will broaden the financing sources of the company’s joint venture in the nation, Managing Director Thomas Wu said in the statement.
The company hasn’t determined the fund-raising size, said Sukyi Yau, a public-relations representative at APCO Worldwide, which was hired by Hopewell Highway.
Sales of yuan-denominated bonds totaled 33.2 billion yuan this year, compared with 25 billion yuan in the last three months of 2010, according to data compiled by Bloomberg.