Aban Singapore sells pre-IPO CB to four investors

The $150 million convertible is part of a funding package arranged by Merrill Lynch that will enable the oil rig contractor to buy out a Norwegian associate.

Pre-IPO convertible bonds are increasingly becoming the instrument of choice when investment banks arrange financing for unlisted companies that have plans to go public at some stage.

For the issuers, a CB provides cash without them having to relinquish much of their control or influence over the company - as they typically would have to if they had sold to private equity investors. Meanwhile, investors will get a guaranteed minimum rate of return on the bonds and at the same...

FinanceAsia has updated its subscription model. Registered readers now have the opportunity to read five articles from our award-winning website for free. Please subscribe for unlimited access.

Print Edition

FinanceAsia Print Edition