Baosteel seals $500m bond exchangeable into CCB

The Chinese steel heavyweight is potentially offloading its equity stake in China Construction Bank through an exchangeable bond structure in Hong Kong.

Baosteel Group, the world’s fourth-largest steel producer by production volume, completed its second equity-linked issuance in 12 months on Tuesday by printing a $500 million zero-coupon bond exchangeable into the Hong Kong shares of China Construction Bank.

Similar to other China-incorporated companies, Baosteel issued the bond through its offshore subsidiary Baosteel Hong Kong Investment and provided a keepwell and liquidity support deed for credit enhancement purposes.

Pricing was fairly aggressive but equity-linked investors had no difficulty snapping up the new three-year bullet deal after the redemption of China Unicom’s $1.84 billion five-year convertible bond last month created ample liquidity in the market.

...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222