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Credit Suisse Issues Five New CBBCs Linked to Chinese Companies

Strategic Insights

— 1 min read

Credit Suisse (Hong Kong) Limited has announced the issuance of five new Currency-Linked Bond Contract (CBBC) series, each linked to Chinese companies. The CBBCs are designed to track the performance of six underlying companies, including HSBC Holdings plc, Xiaomi Corporation, and Tencent Holdings Limited. The five new CBBC series will provide investors with various investment opportunities, including bear and bull options.

The key features of the five new CBBC series include:

  • Five different underlying companies: HSBC Holdings plc, Xiaomi Corporation, CSPC Pharmaceutical Group Limited, Tencent Holdings Limited, and Xiaomi Corporation (again)
  • Five different issue sizes, ranging from 50,000,000 to 100,000,000 CBBCs
  • Five different issue prices, ranging from HK$0.250 to HK$0.250
  • Five different funding costs, ranging from HK$0.1774 to HK$0.2400
  • Five different strike prices, ranging from HK$15.580 to HK$556.190
  • Five different call prices, ranging from HK$16.280 to HK$558.990

The key takeaways from the announcement are:

  • The overall funding costs for the five CBBC series will range from HK$0.1774 to HK$0.2400
  • The strike prices for the five CBBC series will range from HK$15.580 to HK$556.190
  • The call prices for the five CBBC series will range from HK$16.280 to HK$558.990
  • The gearing ratio for the five CBBC series will range from 1.34x to 22.36x
  • The premium for the five CBBC series will range from 40.97% to 67.43%

Statistics:

  • 5 CBBC series been issued, linked to Chinese companies
  • 3 of the underlying companies are listed on the Hong Kong Stock Exchange
  • The issue size of the CBBCs will range from 50,000,000 to 100,000,000 CBBCs
  • The issue prices will range from HK$0.250 to HK$0.250
  • The funding costs will range from HK$0.1774 to HK$0.2400
  • The strike prices will range from HK$15.580 to HK$556.190

Sources:

  • Credit Suisse (Hong Kong) Limited: Announcement - Issuance of CBBCs Linked to Chinese Companies (27 August 2020)
  • Credit Suisse (Hong Kong) Limited: CBBC Terms and Conditions (dated 31 August 2020)
  • Hong Kong Stock Exchange: Daily Quotation Sheet (for all series)

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