CK Asset issues $2 billion medium-term notes

CK Asset (1113) announced that it had recently issued HK$2 billion medium-term notes, joining Henderson Land Development (0012) in the fundraising wave.

The issuance includes three-year fixed-rate notes of a coupon of 3.01 percent and three-year floating rate notes with a coupon based on the Hong Kong Interbank Offered Rate plus 36 basis points, involving HK$780 million, according to a statement by CKA.

The remaining HK$1.23 billion was collected via five-year fixed rate notes of a coupon of 3.33 percent and five-year FRN with Hibor + 61 basis points.

The above MTNs are part of the US$5 billion (HK$39 billionb) Euro Medium Term Note Programme update, of which the offering circular was published on June 23, said CKA.

Gerald Ma Lai-chee, general manager of CKA's corporate business development department and a member of its executive and finance committees, said the notes are probably among the lowest for Hong Kong corporates.

Ma stressed that CKA holds a strong cash position, with a net debt to net total capital ratio of about 4.0 percent.

On Tuesday, Henderson announced its plan to issue convertible bonds to raise HK$8 billion.

STAFF REPORTER