Cheung Kong Infrastructure to buy HK$2.2bn of parent’s debt

Hong Kong's largest listed infrastructure fund is lending money to its own parent company

A Hong Kong-listed infrastructure fund has decided that some of the best returns on offer in this troubled market lie in long-term corporate bonds — and so it is buying debt from its own parent company.
Cheung Kong Infrastructure (CKI) fund will buy HK$2.2 billion (€183 million;$284 million ) worth of debt from its owner, Hutchison Whampoa, using cash from the recent sale of three Chinese power plants to Hong Kong Electric Holdings.
“With a sharp slowdown in the global economy the returns available on surplus liquidity have been low,” the firm said, adding that it wanted to invest into connected companies rather than “arm’s length” firms.
CKI is spending 20 percent of its available cash on the deal, which awaits shareholder approval.