Cathay Pacific slips after Swire unveils $599 million exchangeable bond plan

Swire Pacific

10/06/2026 09:25

** Shares of Cathay Pacific Airways 0293.HK fall 8.5% to HK$11.72, their biggest intraday pct decline since August 6, 2025 
** Stock hits its lowest level since May 6
** Swire Pacific 0019.HK, a key shareholder of Cathay, said its unit Swire Pacific Finance plans to issue to independent investors HK$4.7 billion ($599.81 million) worth of bonds exchangeable into shares of Cathay Pacific, raising proceeds for general working capital purposes  
** The bonds, with maturity on June 16, 2027, are exchangeable into 356.6 million shares, or 5.9% of Cathay's issue share capital, at an initial exchange price of HK$13.18 each
** UBS, which rates Swire Pacific "neutral", views the deal as slightly positive, as it effectively trims about a 5% stake in Cathay from its 45% holding if fully converted, or provides low-cost funding if not
** Swire Pacific shares slip 1.4% 
** YTD, Swire shares up 28.6%, while Cathay Pacific down 4.9%, Hang Seng Index .HSI down 4.9%


($1 = 7.8358 Hong Kong dollars)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))