Press releases

Hong Kong, 2 November 2012 – Hong Kong-based Li & Fung Limited (“Li & Fung”, or “the Company”, SEHK: 494), the multinational consumer goods sourcing, distribution, and logistics group, today announced that it has proceeded with the issue of the Perpetual Bonds and has entered into a subscription agreement with the joint lead managers in relation to the distribution of the Perpetual Bonds. Investor demand for the debut issuance of the Perpetual Bonds was strong and the issue was over-subscribed by over 10 times.

The Perpetual Bonds will be issued with the aggregate principal amount of US$500 million. Li & Fung will apply the net proceeds primarily towards business development and acquisitions. The Perpetual Bonds are subordinated obligations of the Company, will be denominated in U.S. dollars, will not have a maturity date and will confer a right to receive distributions subject to certain conditions. The Perpetual Bonds will have an Initial Distribution Rate of 6.0% and will be issued at par.

The transaction was arranged by Citigroup and HSBC and the Perpetual Bonds were placed with investors in Asia and Europe.

Mr William Fung, Group Chairman of Li & Fung Limited, said, “We felt the Perpetual Bonds offered the most effective way to raise cash at this time and reinforce the Group’s capital needs. We are delighted to welcome the new group of private banking investors and are very pleased to see the continuing strong support and confidence our investors have shown in Li & Fung through this Perpetual Bonds offering.”

Approval-in-principle has been obtained from the Singapore Stock Exchange for the listing of the Perpetual Bonds. Listing and permission to deal in the Perpetual Bonds are expected to become effective on or after 9 November 2012. The Perpetual Bonds have received a rating of Baa2 and BBB from Moody’s Investors Service, Inc. and Standard & Poor’s Rating Services, respectively.

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