China's Hengan issues convertible with record conversion premium

An increase in capacity is expected to lead to continued earnings growth for hygiene products provider whose share price is already up 49% this year.
April 20, 2006
Hengan International Group last night April 20 raised HK$1.5 billion through the sale of five-year convertible bonds that will go partly towards an ongoing expansion of its production facilities.

The deal, which was jointly led by Deutsche Bank and UBS, was priced with a conversion premium of 50%, which was at the top end of the indicated range and the highest ever for a Hong Kong CB. The previous record was 40% on an HK$1 billion CB issued by paper board manufacturer Lee Man Paper in December last year on which Deutsche Bank was sole books.

That Hengan was able to achieve this even though its Hong Kong-listed shares are up...
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