Press releases

Hong Kong, 7 May 2010 – Hong Kong-based multinational Li & Fung Limited (“Li & Fung” or “the Group”, SEHK: 494), the global consumer goods exporter today announced that it has proceeded with the offering of the notes and has entered into the subscription agreement with joint lead managers in relation to the distribution of the notes. The notes will be issued with the aggregate principal amount of US$400 million (approximately HK$3,120 million).

The notes will be denominated in U.S. dollars, will have a maturity of 10 years and due in 2020, and will bear a fixed interest rate of 5.25% per annum during its term with interest payable semi-annually in arrear. Li & Fung will apply the net proceeds primarily towards business development and acquisitions. Citigroup Global Markets Limited, The Hongkong and Shanghai Banking Corporation Limited and J.P. Morgan Securities Ltd. acted as joint lead managers and joint bookrunners. Any stabilisation will be conducted in accordance with the stabilisation rules of the Financial Services Authority.

Mr. William K. Fung, Group Managing Director of Li & Fung Limited, commented, “This is the second bond offering since our inaugural bond issue in 2007. We are very pleased to see the continuing strong support from our investors, a testimony to our prudent financial management and the solid operating position of Li & Fung’s business.” The notes have received a rating of A3 (stable) by Moody’s and A- (stable) by Standard and Poor’s. Approval-in-principle has been obtained from the Singapore Exchange Securities Trading Limited for the listing of, and permission to deal in, the notes. Listing and permission to deal in the notes are expected to become effective on 14 May 2010.

Mr. Bruce Rockowitz, President of Li & Fung (Trading) Limited, said, “We will continue to tread carefully among the many green shoots of growth that are appearing around the globe. At the same time, we will take advantage of opportunities that may arise in this economic environment that will enable us to further reinforce our leading position in global supply chain management.”