Shangri-La Asia raises 1.02 billion yuan with first offshore dim sum bond
Shangri-La Asia has raised 1.02 billion yuan via its first offshore yuan dim sum bond, a seven-year private placement with a 2.7 per cent coupon. The company said the move broadens its yuan funding access and will be used for general corporate purposes, including debt refinancing.
Shangri-La Asia (0069) has issued its first offshore yuan dim sum bond, raising 1.02 billion yuan (HK$1.2 billion), with DBS Bank and United Overseas Bank acting as joint dealers, the company announced.
The seven-year bond, issued by way of private placement, carries an annual coupon rate of 2.7 per cent. It was priced on 29 October and settled on Monday.
Following its previous successful panda bond issuances in the onshore yuan market in 2024 and the first half of 2026, the dim sum bond broadens Shangri-La's access to yuan funding across both onshore and offshore markets, the company said. The move boosts flexibility across its funding platform and locks in long-term funding with a maturity longer than its usual bank loans and panda bonds.
The net proceeds from the issuance will be used for general corporate purposes, including refinancing existing debt, the company added.
Nee Chuan Teo, chief financial officer and executive director of Shangri-La, said: "This successful placement reflects investors' strong recognition of Shangri-La's established business profile, financial robustness and track record. We are encouraged by the support from our investors and banking partners as we continue to execute our long-term funding strategy."
Financial Secretary Paul Chan Mo-po said in a weekly blog last month that the volume of dim sum bonds in Hong Kong stands at close to 1.9 trillion yuan—the largest in the world—and annual issuance has exceeded 1 trillion yuan in each of the past two years.