Hongqiao CB

China Hongqiao prices $150 million CB at investor-friendly end

The deal is completed despite numerous investor concerns, but the bonds fall well below par in the secondary market.
<div style="text-align: left;">
Aluminium busbars waiting to be shipped to Hongqiao's clients
</div>
<div style="text-align: left;"> Aluminium busbars waiting to be shipped to Hongqiao's clients </div>

After a drawn-out bookbuilding that lasted almost 12 hours, aluminium producer China Hongqiao Group early yesterday morning priced its five-put-three convertible bond at the investor-friendly end, resulting in a 6.5% coupon and yield, and a 25% conversion premium.

It wasn’t able to exercise the $50 million upsize option, which meant the deal size stayed at $150 million, but sources said the bookrunners were able to place the majority of that with investors on the night.

It appears Barclays, which was the sole bookrunner for the deal, may have been left with some bonds, although not more than it was comfortable holding. As the CB was quoted...

¬ 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 (2-10 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 (2-10 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