China Petrochemical raises $132m from CB

The company will use proceeds from the convertible bond to build a greenfield plant on the mainland next year.

China Petrochemical Development raised $132 million from a zero-coupon convertible bond on Thursday to help it fund construction of a greenfield plant in the mainland’s Jiangsu province.

The deal has a five-year maturity with a three-year investor put and an issuer call after three years.

China Petrochemical’s convertible bond allows the company to raise capital at a yield of 1.75%. The securities will convert to equity at a premium of 18% over the stock’s closing price on Tuesday of NT$9.15 per share, in the middle of the guidance of 15% to 25%.

The conversion price was set at NT$10.80 per share, towards...

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