Hutchison Whampoa Finance (03/13) Limited

Hutchison Whampoa Finance (03/13) Limited

Hutchison Whampoa Finance (03/13) Limited, often referred to by its bond code, is a special purpose vehicle (SPV) created by CK Hutchison Holdings Limited (formerly Hutchison Whampoa Limited). It’s a crucial element in CK Hutchison’s financing strategy, primarily designed for issuing debt securities in the global capital markets.

The primary function of Hutchison Whampoa Finance (03/13) Limited is to raise funds through the issuance of bonds. These funds are then typically channeled back to CK Hutchison or its subsidiaries to finance various business operations, acquisitions, or capital expenditures. By using an SPV like Hutchison Whampoa Finance (03/13) Limited, CK Hutchison can access a wider range of investors and potentially secure more favorable financing terms.

The “03/13” in the name is often interpreted as a date relating to the bond issuance or the SPV’s incorporation. Bond codes are used by investors to precisely identify specific bonds within the market. The structure of the SPV shields CK Hutchison from direct liability related to the bonds issued, offering a layer of protection. However, CK Hutchison typically provides a guarantee for the bonds issued by Hutchison Whampoa Finance (03/13) Limited. This guarantee is critical as it gives investors confidence in the creditworthiness of the bonds, as it ties the debt to the financial strength of the parent company.

The bonds issued by this entity are typically investment grade, reflecting the strong credit rating of CK Hutchison. This allows Hutchison Whampoa Finance (03/13) Limited to attract a diverse pool of investors, including institutional investors like pension funds, insurance companies, and sovereign wealth funds, in addition to individual investors. The terms of the bonds, such as the interest rate (coupon), maturity date, and any embedded options (like call options), are determined at the time of issuance and are influenced by prevailing market conditions and the creditworthiness of CK Hutchison.

The financial performance of Hutchison Whampoa Finance (03/13) Limited is directly linked to the financial health and strategic direction of CK Hutchison. Investors considering purchasing bonds issued by this entity will carefully analyze CK Hutchison’s financial statements, business segments, and overall market outlook. Changes in CK Hutchison’s credit rating will have a direct impact on the value of the bonds issued by Hutchison Whampoa Finance (03/13) Limited.

In summary, Hutchison Whampoa Finance (03/13) Limited is a strategic financial tool for CK Hutchison, allowing the conglomerate to efficiently raise capital in the global debt markets. The success and stability of this entity are inextricably linked to the overall performance and creditworthiness of its parent company, CK Hutchison Holdings Limited.