Harneys advises HK$8.8 billion convertible bonds for Chow Tai Fook

The transaction featured innovative stock lending arrangements, enabling investors to borrow and sell shares underlying the bonds as part of covered short sales for hedging purposes. Chow Tai Fook also repurchased a portion of these shares, supporting optimal pricing and helping to mitigate any potential impact on its share price. This structure builds on a precedent-setting approach in Hong Kong’s convertible bond market.

The Harneys team was led by Hong Kong Corporate Partner Raymond Ng, with support from Senior Associate Elyse Kwong and Legal Manager Jane Chan. Linklaters acted as the international counsel to Chow Tai Fook.

Raymond commented: “We are delighted to have supported Chow Tai Fook on this landmark convertible bond issuance. The deal’s scale and structure underscore the increasing sophistication of equity-linked transactions in Asia and highlight our team’s expertise in advising on complex cross-border capital markets matters.”

The Corporate team at Harneys has a leading Equity Capital Markets (ECM) practice with substantial experience in all aspects of capital raising by offshore companies, including IPOs and secondary offerings, rights issues, equity linked securities, including convertible and exchangeable bonds, SPACs and business combinations, as well as private placements, take-privates, takeovers and spin-offs. The firm’s ECM expertise lies in advising entities listed or listing on all major stock exchanges, including the New York Stock Exchange, NASDAQ, the London Stock Exchange, AIM, the Hong Kong Stock Exchange, the Shanghai Stock Exchange and the Luxembourg Stock Exchange.