CK Hutchison Sells Euro Bonds in First Post-Merger Debt Offeringby
CK Hutchison Holdings Ltd. sold 2 billion euros ($2.3 billion) of bonds, the company’s first debt sale since being formed through a merger by billionaire Li Ka-shing.
The Hong Kong-based conglomerate sold 1.35 billion euros of seven-year notes at 110 basis points above benchmark rates and 650 million euros of 12-year bonds at 138 basis points, according to data compiled by Bloomberg. The company with interests in ports, telecommunications, retail and energy generated more than half of its revenue in Europe last year, according to data compiled by Bloomberg.
Li’s CK Hutchison is the latest overseas issuer to be lured to the euro-area debt markets by declining borrowing costs after the European Central Bank expanded its stimulus program last month. FedEx Corp. and Fomento Economico Mexicano SAB are among other non-euro area companies that have contributed to 38 billion euros of debt sales in the wake of the ECB decision.
CK Hutchison officials declined to comment on the sale.
The average yield investors demand to hold euro-denominated debt from foreign issuers fell to 1.14 percent on Monday from 1.33 percent on March 9, the day before the announcement, according to a Bank of America Merrill Lynch index.
CK Hutchison was formed by the combination of Li’s flagship Hutchison Whampoa Ltd. and Cheung Kong Holdings in June. Both companies’ non-property businesses were transferred to CK Hutchison, according to the company’s website.