Priced by lead managers Merrill Lynch and Morgan Stanley on Friday, a debut $200 million bond offering by Hysan Development has been successfully positioned within Hong Kong's growing credit universe.
It was all about price in the end, says one banker. The key comparison was with Hongkong Land and the premium that Hysan would need to pay for running a property portfolio in a different neighbourhood.
The difference between a property portfolio in Causeway Bay with an occupancy rate in the 80% range and revenue of HK$1.4 billion per annum against one in Central, with an occupancy rate of 94% and HK$2.9 billion per annum in revenue, was deemed to be about 20bp...
