Hong Kong developer Lai Sun seeks note swap in bid to ease liquidity pressure

Hong Kong developer Lai Sun Development, chaired by businessman Peter Lam Kin-ngok, who also chairs the city’s Tourism Board, has launched an exchange offer for its outstanding US$493 million worth of 5 per cent guaranteed notes due July 2026, in an effort to relieve short-term liquidity pressures, the company said Monday in a filing to the Hong Kong stock exchange.Eligible noteholders can swap their existing holdings for new, US dollar-denominated senior guaranteed notes carrying an 8 per cent annual coupon with a three-year tenor.While the residential property market has shown signs of recovery, commercial real estate markets in Hong Kong and mainland China remain challenging. Continued downward pressure on market valuations and negative rental reversions remain.