ASM Pacific sells HK$2.4bn CB to fund DEK buy

Hong Kong-listed semiconductor company exploits chronic lack of supply to pay for acquisition of DEK from Dover.

The Asian convertible market is firmly open for business as companies in the region get their earnings announcements out of the way.

On Tuesday, Hong Kong-listed ASM Pacific Technology became the second Asian company this week outside Japan to sell a convertible bond, raising HK$2.4 billion $310 million from investors who have been starved of Asian issuance during the recent boom in emerging market credit.

Conditions are now turning in favour of CB issuance. The cost of borrowing from debt markets is rising but so are stock prices, which means that companies can offer investors the opportunity to participate in share price gains as a way...

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