STOCKS | Swire Pacific to Issue HK$4.7 Billion Exchangeable Bonds Linked to Cathay Pacific

Swire Pacific said its board approved an exchangeable bond issue with principal amount of HK$4.7 billion, exchangeable into Cathay Pacific (0293) shares at an initial exchange price of HK$13.18, according to Ming Pao. Swire Pacific will be the issuer and Swire Pacific will act as guarantor, and it has entered into a subscription agreement with managers; assuming full exchange at the exchange price, the bonds would be exchanged into nearly 357 million Cathay Pacific shares, representing about 5.9% of Cathay Pacific’s issued shares as of the announcement date and after full exchange.