Franshion copies perpetual deal pioneered by Sino-Ocean

The Chinese real estate developer raises $500 million from a private placement of perpetual convertible securities that could be called in five years.

Hong Kong-listed Franshion Properties China has raised $500 million from an issue of perpetual subordinated convertible securities that were structured almost exactly like a similar perpetual deal sold by fellow Chinese real estate developer Sino-Ocean Land Holdings in mid-July.

Indeed, sources said the mandate to the arranging banks was to achieve the same accounting treatment as Sino-Ocean did on its $900 million offering, in other words to have the securities treated as equity on the balance sheet from day one....

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