CTF Services to issue HK$2.2bn Shoucheng-exchangeable bonds

CTF Services (0659), previously known as NWS, proposes to issue HK$2.2 billion exchangeable bonds, with half of the net proceeds to be planned for future investments in resilient and cash-generative segments.

Each HK$2 million in principle could be converted into 752,870.32 Shoucheng shares, of which the conglomerate led by the third-generation scion of Hong Kong’s Cheng family, Brian Cheng Chi-ming, holds 835,485,105 shares indirectly via a wholly-owned subsidiary.

The bonds have a three-year tenor with an interest rate of 0.75 percent, with an issue price of 103 percent of the aggregate principal amount of the Bonds. 

The initial exchange price was set at over HK$2.65 per Shoucheng share, representing a 5 percent premium over the closing price of HK$2.53 on September 24, 2025.

The initial exchange property consists of shares in Shoucheng representing 10 percent of the issued share capital, constituting nearly the entirety of CTF Services’ indirect wholly-owned subsidiary's equity interest in the company.

According to the statement, the net proceeds from the bond issuance, HK$2.25 billion, will be used for general corporate purposes. 

About half of this amount is planned to be prioritized for investing in resilient, cash-flow generating projects with growth potential that align with the Group's business segments at an appropriate time. 

CTF Services also mentioned that if bondholders exercise their exchange rights, the company may sell its stake in Shoucheng at a premium, further optimizing and strengthening its business portfolio.

CTF Services plans to list the bonds on the Vienna Stock Exchange.