Link Asset Management Limited (Link), the manager of Link Real Estate Investment Trust (Link REIT; Hong Kong stock code: 823), announced today (Wednesday) that Link successfully priced its convertible bonds (the “Bonds”) due 2027, raising $3.3 billion at 4.5% p.a.

The Bonds are convertible in the circumstances set out in their terms and conditions into Link’s new units at an initial conversion price of $61.92 per unit (subject to adjustments), which represents a conversion premium of 16.5% above the closing price of the unit as quoted on the Stock Exchange of Hong Kong on 22 November 2022. Application will be made for the listing of the Bonds and the units to be issued upon conversion of the Bonds on the Stock Exchange of Hong Kong.

George Hongchoy, Link’s Chief Executive Officer, said:

“We are pleased to receive strong responses from global investors toward our issuance, demonstrating their confidence in Link’s long-term growth prospects. The issuance of convertible bonds enables us to replenish our funding at a lower cost and give us additional financial resources and liquidity for operational needs and business development.”

Assuming there is no other change in Link’s existing unitholding and full conversion of the Bonds at the initial conversion price of $61.92 per unit, a maximum of 53,294,573 new units will be issued, representing approximately 2.5% of the number of units in issue as enlarged by the issue of the new units.

The proceeds will be used to refinance existing obligations as well as general corporate purposes. Link last issued convertible bonds in 2019, which raised $4 billion – majority of them have been repaid, and only $787 million remains outstanding.

HSBC is the sole global coordinator and sole bookrunner for the convertible bond issuance.

More details about the issue are available in the regulatory announcement.

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About Link

Link Real Estate Investment Trust (Hong Kong stock code: 823), is the largest REIT in Asia. It is managed by Link Asset Management Limited, a leading real estate investor and asset manager in the world. Since its listing in 2005 as the first REIT in Hong Kong, Link REIT has been 100% held by public and institutional investors. It is a constituent of the Hong Kong securities market benchmark Hang Seng Index, as well as a component of the Dow Jones Sustainability Asia Pacific Index, the FTSE4Good Index Series and the Hang Seng Corporate Sustainability Index. From its home in Hong Kong, Link Asset Management Limited owns and manages a diversified portfolio including retail facilities, car parks, offices and logistics assets spanning from China’s Beijing, Greater Bay Area (Hong Kong, Guangzhou and Shenzhen), and Yangtze River Delta centred around Shanghai, to the UK’s London and Australia’s Sydney and Melbourne. Link Asset Management Limited seeks to extend its portfolio growth trajectory and grasp expansion opportunities in different markets in pursuit of sustainable growth.

For details, please visit https://www.linkreit.com.