Property Giant Hysan's Borrowing Surges With Fresh $4 Billion Bond Issuance
Portfolio Pulse from Daniel Harrison
Hong Kong property developer Hysan Development Company Limited (OTC:HYSNY) has issued a prospectus for up to $4 billion of medium-term bonds, more than 10 times its average medium-term debt tranche. The bonds are being issued in the form of zero-coupon notes that are heavily discounted to institutional purchasers. The company plans to list the bonds on the Hong Kong exchanges within the next 12 months. The bonds are unsecured and reliant on a guarantee by Hysan to repay. Bank of America Corporation (NYSE:BAC) and UBS Group AG (NYSE:UBS) are handling the debt issuance.
October 10, 2023 | 3:43 pm
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NEUTRAL IMPACT
Bank of America Corporation is handling the debt issuance for Hysan Development Company Limited.
As one of the banks handling the debt issuance, Bank of America Corporation could potentially benefit from fees associated with the transaction. However, the impact on the bank's overall financials and stock price is likely to be minimal.
CONFIDENCE 90
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
UBS Group AG is handling the debt issuance for Hysan Development Company Limited.
As one of the banks handling the debt issuance, UBS Group AG could potentially benefit from fees associated with the transaction. However, the impact on the bank's overall financials and stock price is likely to be minimal.
CONFIDENCE 90
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
Hysan Development Company Limited has issued a prospectus for up to $4 billion of medium-term bonds. The bonds are unsecured and reliant on a guarantee by Hysan to repay.
The issuance of such a large amount of debt could potentially put pressure on Hysan's financials, especially if the company faces difficulties in repaying the debt. This could negatively impact the company's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100