30 junho 2025
Linklaters advises on Chow Tai Fook Jewellery Group’s US$1.1bn convertible bond issuance
Linklaters advised the sole bookrunner on the issuance of HK$8.8bn (approx. US$1.1bn) convertible bonds by Chow Tai Fook Jewellery Group Ltd. The bonds are listed on the Hong Kong Stock Exchange and is one of Hong Kong’s largest convertible bonds this year.
Concurrent with the bond offering, stock lending arrangements were entered into to allow investors to borrow and sell existing shares of the company, which are notionally underlying the bonds, as part of covered short sales for hedging purposes. The sole bookrunner facilitated these shares, and the company repurchased a portion of these shares being sold, aiming to achieve better pricing terms and mitigate any negative impact on its share price. This structure follows on from the first of its kind transaction in Hong Kong SAR which Linklaters advised on.
This transaction continues the recent trend of sizeable equity-linked transactions in the Asia Pacific region over the past few months, including Ping An Insurance’s US$1.5bn convertible bonds, China Petrochemical Corporation (Sinopec Group)’s HK$7.75bn exchangeable bonds, and LG Chem’s US$1bn exchangeable bonds, as advised on by Linklaters.
The Linklaters team was led by capital markets partners Taiki Ki and Stephen Song and corporate partner Donnelly Chan, with support from solicitors Jun Tang and Florence Sit.
Concurrent with the bond offering, stock lending arrangements were entered into to allow investors to borrow and sell existing shares of the company, which are notionally underlying the bonds, as part of covered short sales for hedging purposes. The sole bookrunner facilitated these shares, and the company repurchased a portion of these shares being sold, aiming to achieve better pricing terms and mitigate any negative impact on its share price. This structure follows on from the first of its kind transaction in Hong Kong SAR which Linklaters advised on.
This transaction continues the recent trend of sizeable equity-linked transactions in the Asia Pacific region over the past few months, including Ping An Insurance’s US$1.5bn convertible bonds, China Petrochemical Corporation (Sinopec Group)’s HK$7.75bn exchangeable bonds, and LG Chem’s US$1bn exchangeable bonds, as advised on by Linklaters.
The Linklaters team was led by capital markets partners Taiki Ki and Stephen Song and corporate partner Donnelly Chan, with support from solicitors Jun Tang and Florence Sit.
