Clifford Chance

Clifford Chance advises on Chow Tai Fook Jewellery's HK$8.8 billion convertible bond issuance

Global law firm Clifford Chance has advised Chow Tai Fook Jewellery as issuer's counsel on its issuance and listing of HK$8.8 billion (US$1.12 billion) 0.375% convertible bonds due 2030, on the Hong Kong Stock Exchange.

The transaction featured a unique structure where, concurrent with the bond issuance, stock lending arrangements were implemented to enable investors to hedge their bond positions through covered short selling, with Chow Tai Fook Jewellery repurchasing a portion of the shares sold. This approach aimed to secure more favourable pricing and reduce potential pressure on the share price from short sales.

Partner Mark Chan said, "The success of this transaction, which was also one of the largest convertible bond issuances in Hong Kong this year, demonstrates the strength and depth of our team to execute complex equity-linked transactions by combining our global financial markets, corporate, financial regulatory and derivatives expertise."

Mark was supported by senior associates George Mok and Kenneth Ip, and associates Christine Michelle Chan and Valerie Chan. Partner Terry Yang and senior associate Jane Chen advised on financial regulatory aspects. Partner Virginia Lee and senior associate Ryan Ho advised on corporate aspects.

Partner Virginia Lee added, "We are proud to have advised Chow Tai Fook Jewellery on this landmark convertible bond issuance, which will support their strategic growth ambitions going forward."

Hong Kong-listed Chow Tai Fook Jewellery is a leading Chinese jeweller and one of the largest jewellers in the world.

This transaction builds on Clifford Chance's track record of advising on major debt issuances in Hong Kong, including the HKSAR Government's inaugural issuance under the Infrastructure Bond Programme, The Hong Kong Mortgage Corporation Limited's landmark HK$23.8 billion social bond issuance, and HSBC's first-in-market digital bond issuance.