Li & Fung : VOLUNTARY ANNOUNCEMENT - DRAWDOWN UNDER THE MEDIUM TERM NOTE AND PERPETUAL SECURITIES PROGRAMME

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

This announcement is for informational purposes only and is not an offer to sell or the solicitation of an offer to buy securities in the United States or in any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

This announcement is not for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia). This announcement does not constitute or form a part of an offer to sell or the solicitation of an offer to buy any securities in the United States or any other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The securities referred to herein have not been and will not be registered under the U.S. Securities Act and may not be offered or sold in the United States, or to or for the account or benefit of U.S. persons, absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act. Any offering of securities will be made by means of an offering document. Such offering document will contain detailed information about the Company and its management and financial statements. No public offering of the securities referred to herein will be made in the United States. None of the Drawdown Instruments will be offered to the public in Hong Kong nor will the Drawdown Instruments be placed to any connected persons of the Company.

Reference is made to the announcement of the Company on 11 October 2016 in relation to its establishment of the Programme.

The Board is pleased to announce that on 27 October 2016, the Company has carried out a drawdown under the Programme to offer and issue the Drawdown Instruments in an aggregate nominal amount of US$650,000,000, which are exempt from, and not subject to, the registration requirements under the U.S. Securities Act.

The Drawdown Instruments are denominated in U.S. dollars, will not have a maturity date and will confer a right to receive distributions in the circumstances described in their terms.

The Board is pleased to announce that on 27 October 2016, the Company has carried out a drawdown under the Programme to offer and issue the Drawdown Instruments in an aggregate nominal amount of US$650,000,000, which are exempt from, and not subject to, the registration requirements under the U.S. Securities Act.

The Company currently intends to use the net proceeds from the Drawdown Instruments primarily for refinancing long-term indebtedness.

An application has been made by the Company to the Singapore Exchange Securities Trading Limited (the SGX-ST) for the listing of and permission to deal in the Drawdown Instruments and such permission will be granted when the Drawdown Instruments have been admitted to the Official List of the SGX-ST, which is expected to be on or about 4 November 2016.

In this announcement, the following terms have the meanings set forth below unless the context requires otherwise:

the US$650,000,000 5.25 per cent. subordinated perpetual capital securities offered and to be issued by the Company pursuant to a drawdown under the Programme

U.S. Securities Act of 1933, as amended

By Order of the Board William FUNG Kwok Lun

Group Chairman, Li & Fung Limited Hong Kong, 27 October 2016

As at the date of this announcement, Executive Directors of the Company are William Fung Kwok Lun (Group Chairman), Spencer Theodore Fung (Group Chief Executive Officer) and Marc Robert Compagnon; Non-executive Director is Victor Fung Kwok King (Honorary Chairman); Independent Non-executive Directors are Paul Edward Selway-Swift, Allan Wong Chi Yun, Martin Tang Yue Nien and Margaret Leung Ko May Yee.