Crédit Agricole CIB implemented a novel hybrid bond structure for Hysan Development
A significant milestone for Hysan as it navigates the global hybrid capital markets with a pioneering global-first approach.
In March 2025, Hong Kong property developer Hysan Development issued a US$750 million perpetual non-call 5.5-year bond with a unique hybrid structure. This issuance is the first transaction globally that successfully achieved a 1-notch issue rating outcome under Moody Investor Services’ revised hybrid methodology published in February 2024, which has a perpetual maturity. Hysan conducted a concurrent public tender offer for its outstanding US$750 million junior subordinated perpetual securities which has its first call date in June 2025. The highly successful tender offer received a total of approximately US$690 million of instructions.
Crédit Agricole CIB acted as joint global coordinator, joint bookrunner and joint lead manager for this groundbreaking US-dollar hybrid securities, as well as joint dealer manager in the tender offer.

Hybrid securities are securities that feature both debt (borrowing money from an external source) and equity characteristics (raising money by selling shares). One common example of hybrid securities is subordinated perpetual bonds, in which investors that hold a higher seniority of the bond gets paid out first.
Despite being riskier than conventional bonds, hybrid bonds can be a beneficial instrument for issuers – they are usually less costly than equity. By including equity-like features, they also tend to improve the issuers’ credit ratios, provide potentially higher rate of returns, and could be tax-deductible.
The issuance for Hysan Development was implemented in response to an updated equity credit rating methodology introduced by Moody's Investor Services for hybrid bonds last year. This innovative structure supported Hysan Development in attaining an investment-grade issue rating for the instrument and a better pricing outcome, which attracted investors to oversubscribe by 4.3 times. Given hybrid bonds’ flexible nature, structures are highly customisable depending on issuers’ financial and strategic objectives.
In January this year, Crédit Agricole CIB has also led another Hong Kong-based corporate, the city’s utilities provider CLP Power Hong Kong, in issuing a hybrid bond and is one of only two banks to play a lead role on both transactions. Notably, the Bank is the only bank to lead the ratings workstream on both these issuances. These transactions showcase Crédit Agricole CIB’s ongoing effort in offering clients best-in-class solutions through innovation and expertise.
“After two successful hybrid bonds launched in 2025 in Hong Kong, we are hopeful that they will set a good benchmark for issuers in the region and more widely. With Crédit Agricole CIB participating in both successful issuances, we believe these transactions demonstrate our thoughtfulness to tailor financings for issuers and our expertise to turn visions into reality.”

Tim Fang
Head of Debt Capital Markets for Greater China
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