China Mobile and PCCW assail convertible market

Differing credit perceptions have led China Mobile and Pacific Century CyberWorks (PCCW) to take radically different approaches to the structure of their debut equity-linked bonds.

Keen to keep dollar-denominated off its balance sheet, China Mobile has adopted a highly equity-oriented approach to its $600 million deal. PCCW, on the other hand, fighting to reduce its massive debt load and rebuild some credibility with investors, has targeted mainstream convertible accounts with its $1.1 billion offering.

The sudden appearance of the latter on the day the former announced indicative terms, initially left some observers wondering whether overall demand would be cannibalised. However, most...

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