Re Convertible Bond Issue

Hongkong Land Hldgs Ld 07 December 2005 For immediate release HONGKONG LAND US$400 MILLION CONVERTIBLE BOND ISSUE Singapore, 7th December 2005 - Hongkong Land Holdings Limited (the 'Guarantor' or 'Hongkong Land') today announced that its wholly owned subsidiary, Hongkong Land CB (2005) Limited (the 'Issuer'), has priced and allocated the issue of US$400 million convertible bonds due 2012 (the 'Convertible Bonds'). The offer size has been increased from an original indication of US$350 million to US$400 million as a result of strong demand. The Convertible Bonds are guaranteed by the Guarantor, and are convertible into new ordinary shares ('New Shares') of US$0.10 each in the capital of the Guarantor. J.P.Morgan Securities Ltd. and UBS AG (the 'Lead Managers') are the Joint Bookrunners and Lead Managers of the issue of the Convertible Bonds. Principal Terms of the Convertible Bonds The terms and conditions of the Convertible Bonds are as follows: -------------------------------------------------------------------------------- Issuer Hongkong Land CB (2005) Limited -------------------------------------------------------------------------------- Guarantor Hongkong Land Holdings Limited -------------------------------------------------------------------------------- Offer size US$400 million -------------------------------------------------------------------------------- Issue price 100% -------------------------------------------------------------------------------- Maturity 7 Years -------------------------------------------------------------------------------- Investor put None -------------------------------------------------------------------------------- Issuer call Issuer call on or after 5 years and 2 weeks if the value of the shares into which the Bonds convert is at least 130% of the principal amount of such Bond for 30 trading days -------------------------------------------------------------------------------- Coupon 2.75% per annum, calculated on a semi-annual basis -------------------------------------------------------------------------------- Conversion Price US$3.85 per Share -------------------------------------------------------------------------------- Redemption price 100% -------------------------------------------------------------------------------- Listing London Stock Exchange -------------------------------------------------------------------------------- New Shares to be Issued The number of New Shares that will be issued by the Guarantor in the event of the full conversion of the Convertible Bonds is 103,896,104 (based on the conversion price of US$3.85 per Share). This represents approximately 4.53 per cent. of the issued share capital of the Guarantor as at 5th December 2005, and approximately 4.33 per cent. of the enlarged issued share capital of the Guarantor. Use of Proceeds The estimated net proceeds (after deduction of fees, commissions and administrative expenses) of the issue of the Convertible Bonds are estimated to be approximately US$395.5 million, and will be used by the Group for general corporate purposes. Conditions Completion of the issue of Convertible Bonds is subject to the satisfaction and/ or waiver of the conditions precedent contained in a subscription agreement dated 7th December 2005, between the Issuer, the Guarantor and the Lead Managers. Closing Date The closing date for the issue of the Convertible Bonds is expected to be on or around 21st December 2005. Share Dealings by Jardine Strategic Jardine Strategic Holdings Limited purchased 5.55 million Shares on 7th December 2005, increasing its interest in the issued share capital of the Guarantor from 45.1% to 45.4%. Information on Hongkong Land Hongkong Land is a leading property investment, management and development group with a major portfolio in Hong Kong, where it owns and manages some five million sq. ft of prime office and retail space in the heart of the Central business district. It also develops high quality commercial property projects elsewhere in Asia and has a growing interest in residential development. Hongkong Land Limited manages these assets from Hong Kong by providing services to Group companies. Hongkong Land is incorporated in Bermuda with its primary share listing in London. The Company's shares are also listed in Bermuda and Singapore. Hongkong Land is a member of the Jardine Matheson Group. - end - For further information, please contact: Hongkong Land Limited Geoffrey Brown (852) 2842 8138 (852) 9612 3496 Matheson & Co Limited Martin Henderson (44) 207 816 8135 GolinHarris C T Hew (852) 2522 7928 Weber Shandwick Square Mile Richard Hews / Helen Thomas (44) 207 067 0700 This and other Group announcements can be accessed through the Internet at ''. This announcement may not be distributed, directly or indirectly, in or into the United States, Canada, or Japan. This information is provided by RNS The company news service from the London Stock Exchange
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