Swire Issues HKD4.7 Billion One-Year Exchangeable Bond on 5.9% Cathay Stake
Swire has issued a one-year exchangeable bond with a principal amount of HKD4.7 billion, exchangeable into Cathay Pacific shares. The initial exchange price is HKD13.18 per share, a premium of about 2.9% to Cathay's share price. Full exercise would exchange into 356.6 million Cathay shares, or about 5.9% of Cathay's total issued shares. The bond carries a zero coupon and was issued at 100.125% of principal, giving a yield to maturity of negative 0.125%.
Swire (00019) has recently reduced or placed shares in its subsidiary Cathay Pacific (00293). In early June 2026, Swire issued an exchangeable bond exchangeable into Cathay shares, with a total principal amount of HKD4.7 billion and a term of one year.
The bond's initial exchange price is HKD13.18 per share, representing a premium of about 2.9% to Cathay's share price. If fully exercised, it can be exchanged into 356.6 million Cathay shares, equivalent to about 5.9% of Cathay's total issued shares.
The bond has a zero coupon rate and was issued at 100.125% of the total principal amount. The yield to maturity for holding the bond to maturity is negative 0.125%, meaning Swire does not need to pay interest or financial costs.
Why this event matters
The event has a measured impact on 1 industry. The strongest current signal is neutral for Air Transport, with intensity 30/100 and 70% confidence over a short term horizon.
Impact figures are analytical estimates that combine direction, intensity, confidence and event importance. They are not investment advice.