Gome sells $345 million of renminbi CBs

Gome Electrical Appliance Holdings has raised $345 million from the sale of a five-year renminbi-denominated, US dollar-settled convertible bond, which it will use to cover a potential buyback of outstanding convertible bonds. The existing bonds, which were issued in 2007, can be put back to the company in May 2010.

Gome initially sold Rmb2.05 billion ($300 million) of the new CB late Tuesday, but after a strong performance in the secondary market, it exercised $45 million of the $50 million upsize option yesterday, bringing the total deal size to $345 million.