23 January 2009

Hong Kong-based Sun Hung Kai Financial (SHKF) has agreed to buy back all the Lehman Brothers credit-linked minibonds it sold to retail investors. The decision follows an investigation by the territory's Securities and Futures Commission into possible mis-selling of the structured credit instruments.

"After exploring various alternatives over several months with the primary objective of assisting our 310 affected customers with Lehman Brothers' minibond issues, Sun Hung Kai Financial decided voluntarily to repurchase up to approximately HK$85 million ($11 million) in Lehman Brothers minibonds from our eligible primary market retail customers, without admission by SHKF of any liability or wrongdoing," SHKF said in a statement. SHKF has been selling Lehman Brothers minibonds since 2002.

The company will purchase all outstanding Lehman Brothers minibonds bought by eligible SHKF clients at a price equal to the principal amount invested.

"The Lehman Brothers minibond series of credit-linked notes was a Lehman Brothers-developed product," the...