Hutchison Whampoa’s global notes offering was huge: the biggest ever in Asia outside of Japan and the second biggest globally in 2003. The $1.5bn 30-year tranche set the record for the largest US dollar long bond in Asia’s history.
But the deal is notable for other reasons too. The underwriters initially announced a deal size of $3bn and devised an accelerated two-team, two-day roadshow to achieve maximum reach in a very short period of time. This was complemented by an initial price guidance, which built momentum and resulted in a tightening of the price guidance after just 24 hours. It also meant the transaction could be upsized by $2bn. The offer generated $13bn in demand from close to 700 counts.
The timing was also good, completing the transaction at a time when US Treasury yields were declining and existing credit spreads were tighter than usual.
“Hutchison’s management did an outstanding job conveying its credit story to investors and ratings agencies,” said Rajiv Ghatalia, co-head of Asian investment banking at Goldman Sachs.
