Shangri-La Asia (0069) issued its first offshore yuan dim sum bond, raising 1.02 billion yuan (HK$1.2 billion), with DBS Bank and United Overseas Bank serving as joint dealers.
The 7-year bond, issued by way of private placement, carries an annual coupon rate of 2.7 percent. It was priced on 29 October and settled on Monday.
Following its previous successful panda bond issuances in the onshore yuan market in 2024 and first-half 2026, the Dim Sum bond broadens Shangri-La's access to yuan funding across both onshore and offshore markets, boosting flexibility across its funding platform and locking in long-term funding longer than the usual maturity of its bank loans and panda bonds, the company said.
The net proceeds from the issuance will be used for general corporate purposes, including refinancing existing debt, it added.
Nee Chuan Teo, chief financial officer and executive director of Shangri-La said, "This successful placement reflects investors' strong recognition of Shangri-La's established business profile, financial robustness and track record. We are encouraged by the support from our investors and banking partners as we continue to execute our long-term funding strategy."
The volume of dim sum bonds in Hong Kong stands at close to 1.9 trillion yuan—the largest in the world, and annual issuance has exceeded 1 trillion yuan in each of the past two years, Financial Secretary Paul Chan Mo-po said in a weekly blog last month.
Frank Feng
