China High Speed re-opens renminbi CB market

A strong equity story and a share swap to facilitate hedging of the equity option allow the wind power company to achieve a zero coupon and a 30% conversion premium.
China High Speed Transmission has raised Rmb2 billion $285 million from the sale of renminbi-denominated convertible bonds, taking advantage of a slight improvement in the credit markets. The offering, which was launched and priced on Tuesday night, also came on the back of a strong earnings report that sparked confidence about the share price outlook. The stock soared 22% on Monday and Tuesday this week, although half of that came before the release of the full-year earnings.

The manufacturer of gearboxes for wind power turbines attracted good interest for the US-dollar settled bonds, and was able to increase the deal from an initial Rmb1.75 billion $250 million using part of the available upsize option....
¬ Haymarket Media Limited. All rights reserved.

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 [email protected], or +(852) 2122 5222