The company is controlled by Hong Kong billionaire Henry Cheng’s family, whose empire includes distressed developer New World Development.
Chow Tai Fook will use proceeds from the offering to develop and finance its gold-jewellery business, upgrade stores and expand domestically and internationally, the terms show.
UBS Group, the sole bookrunner of the deal, is proposing to conduct a share placement aimed at facilitating hedging for investors buying the bonds, according to the terms. As part of that placement, Chow Tai Fook will buy back as much as HK$1.57 billion of shares.
Chow Tai Fook shares rose 6% to HK$13.72 in Hong Kong before news of the sale emerged.
