Li & Fung successfully issued US$300M bond for refinancing, demonstrating financial strength amid global volatility

Hong Kong, 30 July 2025 - Against escalating trade tensions, rising corporate bond yields, and unprecedented market volatility, Li & Fung has priced a US$300 million bond at an 8.375% coupon, due in February 2029, to refinance existing debt maturing in 2025. In parallel, the company is offering to repurchase up to US$50 million of perpetual securities using internal cash reserves. Both transactions are expected to close on August 5 and 6, 2025, respectively. Together, these actions result in an effective after-tax interest cost of 6.8%, reflecting tax-deductible interest expenses and net interest savings from the securities repurchase - a compelling outcome that underscores Li & Fung's disciplined financial strategy and strong market position.

While Li & Fung has ample liquidity to fully retire its existing debt maturing in 2025, the company's proactive decision to issue new bonds strengthens its balance sheet and helps preserve financial flexibility in today's uncertain environment. The final order book of the bond offering was close to US$1 billion, representing 3 times oversubscription with strong participation from key global institutional investors. Robust investor demand for the issuance is a resounding vote of confidence in the newly transformed Li & Fung, a digitally enabled, globally diversified supply chain orchestrator built for resilience and complexity.

The combined strategy of external fundraising and internal capital deployment reflects our conviction in the business's long-term value and reinforces our ability to navigate volatility while remaining positioned for growth. In today's environment, every crisis presents both risks and opportunities, and Li & Fung stands ready to seize new opportunities, including disciplined strategic investments and acquisitions that further strengthen our platform.

As global supply chains face ongoing disruption, Li & Fung remains committed to delivering sustained value for our customers, partners, and stakeholders through operational excellence, innovation, and financial strength.