Wilmar braves market with $500 million CB

The bonds are re-offered below par as risk-averse investors, and a lack of hedging opportunities, pose a challenge.

AsiaÆs leading crude palm oil producer, Wilmar International, yesterday launched a convertible bond issue that, from its size alone, seemed like a brave proposition in the current volatile market environment. At $500 million, this is the largest CB by a Singapore issuer this year after CapitaLandÆs $655 million offering in May.

One could argue that with Singapore-listed Wilmar having grown into an $18.7 billion market cap giant following three mergers in 12 months, the deal was of an appropriate...

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