beijing-enterprises-raises-275-million-from-cb

Beijing Enterprises raises $275 million from CB

The hotly contested deal attracts good demand despite fairly aggressive pricing as investors buy the equity story, while taking comfort in the company's status as a quasi-sovereign issuer.

Beijing Enterprises on Friday became the first Hong Kong-listed company to issue a publicly marketed convertible bond since May last year. Despite fairly aggressive pricing, the deal was well received and upsized by 21%, which allowed the Chinese utilities company to raise HK$2.15 billion $275 million.

According to sources, the five-year bond, which can be put back to the company after three years, was about 2.5 times covered and attracted 50 or so investors in the close to three hours that the books were open. Fundamental equity investors featured prominently alongside the usual hedge funds as the stockmarket recovery over the past six weeks has made them keen to get exposure to any...

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