Hong Kong’s FWD Group skips call for zero-coupon perpetual securities

By William Gullotti

Buffalo, N.Y., May 16 – FWD Group Ltd. has elected not to redeem its outstanding $750 million zero-coupon subordinated perpetual capital securities (ISIN: XS1628340538) on its first call date, according to a notice on Monday.

The first call date is June 15; however, the company has elected instead to leave the securities outstanding due to corporate developments. Such developments include the IPO of FWD Group Holdings Ltd. (FGHL) on the Hong Kong Exchange on Feb. 28 and subsequent reorganization steps to make FGHL the new market access point for all future equity and debt activities of the group.

The outstanding securities will now pay a semiannual distribution at a rate equal to Treasuries plus 486.5 basis points.

The securities will continue to be redeemable at the FGHL’s option on each subsequent distribution date, the next of which is Dec. 15.

Hong Kong-based FWD is the insurance business of investment group Pacific Century Group.

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