Savvy Cheung Kong issues Asia’s first senior perpetual

Hong Kong billionaire Li Ka-shing’s Cheung Kong Holdings last night closed a S$500 million $415 million senior perpetual, the first of its kind in Asia. While perpetual issuance has picked up in the region this year until the markets hit a brick wall so far they have all been subordinated in nature.

The deal further burnishes Cheung Kong’s reputation as a shrewd and innovative borrower. Last year it re-opened the market for perpetuals in Asia after more than a decade-long hiatus with a $1 billion issue. Its latest foray into the Singapore dollar bond market allows it to lock-in funding at a low rate and reap the arbitrage opportunity offered...