Hong Kong billionaire Richard Li’s FWD Group Holdings Ltd sold $1.15 billion of dollar bonds to fund a debt repurchase, as the insurer seeks to improve its capital structure and cut borrowing costs.

The $575 million each of five- and 10-year subordinated notes were respectively priced 1.65 and 1.8 percentage points above comparable Treasuries, according to a person familiar with the matter who requested anonymity discussing private matters. The spreads tightened as much as 0.5 percentage point from initial price talk.

Proceeds will be used for general corporate purposes that include refinancing a $900 million 8.4 percent bond due 2029, the person added. FWD on Monday said it launched a tender offer for the note at a price 1.65 percent above face value to optimize its capital structure and financing costs. The offer deadline is Sept 22.

The company, controlled by Richard Li — son of famed tycoon Li Ka-shing — in July raised HK$3.5 billion ($450 million) through a Hong Kong initial public offering of its shares. The bond sale occurred ahead of this week’s widely expected interest rate cut by the Federal Reserve and amid robust investor appetite for corporate bonds.

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Order books for the new bonds peaked at about $15 billion. FWD’s offering was among 10 in the US investment-grade market.