debut-highyield-issuer-lumena-offers-chance-to-diversify

Debut high-yield issuer Lumena offers chance to diversify

The world's second largest thenardite producer sells $250 million of 12% five-year bonds.

Chinese chemicals company Lumena Resources last night priced a $250 million high-yield bond, becoming the first debut issuer in the Asian non-investment grade market for more than two years. But this deal also gave investors something that is even rarer - exposure to a new and largely unknown sector -- which meant it offered a real diversification opportunity for investors who were prepared to do a bit of work.

It wasn't an easy sell though. The bookrunners -- BOC International, Credit Suisse and Deutsche Bank -- spent almost two weeks on the road with the management in an attempt to explain the company, the business and not least the industry dynamics -- a process not...

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