Advertisement
Henderson Land Development plans to raise HKD 8 billion (USD1.02 billion) through convertible bonds for general corporate purposes and refinancing.The Hong Kong property developer?s shares fell by as much as 1136 per share, potentially increasing equity capital by 4.6%. This move comes amid market uncertainty, with Hong Kong home prices down 30% from 2021 and record office vacancy rates, influencing a major landlord in the Central Financial District.
Henderson Land Development, a Hong Kong property developer, recently announced plans to raise a substantial amount of capital through the issuance of convertible bonds. This move, impacting its operations in Hong Kong's financial market, is for general corporate purposes and refinancing activities, by offering bonds that can be converted into company shares. Advertisement
Henderson Land Development, founded by Lee Shau Kee, plans to raise HKD 8 billion, which is equivalent to USD 1.02 billion, through these convertible bonds. The net proceeds from this bond issue are expected to be around HKD 7.92 billion. The initial conversion price for these bonds is HKD 36 per share. If fully converted, this would increase Henderson Land's equity capital by USD 4.6320 million in annual interest. Following the announcement, Henderson Land's shares experienced a drop of as much as 11% before recovering slightly to be down 8.6%. This decline occurred despite the shares having gained approximately 36% in the three months prior.
An independent Hong Kong-based analyst suggested that the sharp drop was likely due to profit-taking, given the ongoing market uncertainty. Hong Kong's property market faces continued uncertainty. Home prices have decreased by nearly 30% from their 2021 peak, and office vacancy rates have reached record highs.
Henderson Land, as a major office landlord in the city's Central Financial District, is particularly affected by this oversupply. The company stated that the fundraising would help diversify its funding sources for ongoing business development.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
