TOM Group issues HK$4.5bn perpetual securities, repays bank loans

TOM Group Limited announced on November 27, 2025, the issuance of HK$4.50 billion in subordinated perpetual securities to Hutchison Whampoa Europe Investments S.à r.I, an indirect wholly-owned subsidiary of CK Hutchison Holdings Limited, a substantial shareholder of TOM Group. The proceeds are primarily for the repayment of the group's material liabilities, specifically long-term non-current bank loans totaling approximately HK$4.08 billion, including accrued interest, and related expenses.

This financial move is expected to positively impact TOM Group's financial position by reducing its gearing ratio and enhancing its net asset position, with the perpetual securities classified as equity. The company anticipates improved liquidity and capital, allowing for better focus on business operations and seizing investment opportunities.

The perpetual securities carry a distribution rate of 6.5% per annum until the fifth anniversary of the issue date. Subsequently, the rate will adjust based on the annualised mid-swap rate for HKD swap transactions (five-year maturity), plus an initial margin of 3.70% per annum, and an applicable step-up margin of 0.25% per annum for the first step-up period and for each successive step-up period thereafter. The company retains the right to defer distributions without limit.