CK Hutchison Plans to Raise $1.5 Billion in Two-Tranche US Dollar Bond Deal

Hong Kong-based conglomerate CK Hutchison is preparing to raise up to $1.5 billion through a two-part US dollar bond issuance, according to sources familiar with the matter. The company is targeting 5.5-year and 10-year bonds, as outlined in a term sheet shared on Tuesday, September 10.

Initial pricing guidance for the bonds has been set at Treasuries plus approximately 125 basis points for the 5.5-year tranche and Treasuries plus 145 basis points for the 10-year tranche, according to the document.

Proceeds from the bond issuance are intended to be used to pay down existing debt and fund general corporate activities, as indicated on the term sheet.

CK Hutchison, a vast conglomerate with assets spanning railways, ports, and telecommunications, is controlled by Hong Kong’s richest individual, Li Ka-shing. The company has been active in the bond market this year, raising $2 billion in April through a five-year green bond and a 10-year bond. The funds from the 10-year bond were allocated to refinance existing debt, while the green bond proceeds were directed toward projects under CK Hutchison’s sustainable finance framework.

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