Hong Kong billionaire Richard Li’s FWD Group Holdings Ltd has offered to buy back an existing dollar bond with planned new debt, as the insurer seeks to improve its capital structure and cut borrowing costs.

The company, controlled by the son of famed tycoon Li Ka-shing, commenced a so-called tender offer to purchase for cash its outstanding $900 million 8.4 percent notes due 2029, according to a filing to Hong Kong’s stock exchange on Monday.

The purchase price is $1,016.5 per $1,000 in principal amount and the cash tender is meant to “optimize the capital structure and cost of financing of the issuer”, FWD said in the filing. The offer will end at 5 pm New York time on Sept 22.

Meanwhile, FWD is marketing a two-tranche, benchmark-sized dollar bond, with pricing expected later Monday, Bloomberg News reported. The company will use the net proceeds of the five-year and 10-year notes for general corporate purposes, including refinancing the 8.4 percent note.

The latest debt financing moves come two months after FWD raised HK$3.5 billion ($450 million) via a stock listing in the Asian financial hub. It is also taking place ahead of the Federal Reserve’s widely expected interest rate cut this week and amid robust investor appetite for corporate bonds.

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Initial price talk for FWD’s proposed dollar bonds is at around 210 basis points over corresponding Treasury yields for the 5-year tenor and about 230 basis points for the 10-year tranche, respectively. As of mid Monday morning Hong Kong time, the deal had received orders exceeding $3 billion, according to a person familiar with the matter who requested anonymity discussing private matters.