Chow Tai Fook Services (0659) said on Wednesday it applied to the National Association of Financial Market Institutional Investors for registration to raise up to 5 billion yuan (HK$5.59 billion) of Panda bonds in China's interbank bond market under a 2026 Panda bond programme.
The programme may be launched within two years from the date of receipt of the registration acceptance notice and may be issued in multiple tranches at appropriate times.
The company expects favourable interest rate differentials between US dollar and yuan borrowings to continue.
It said the programme would provide a cost-effective way to refinance the outstanding principal amount of notes maturing in 2026 and 2027, and continue to serve as a natural hedge against yuan's exchange rate fluctuations.
Cynthia ZHONG
