Double win for COLI exchangeable bond

Both the issuer and investors appear to be happy as the Chinese property developer delivered a jumbo $1.5 billion exchangeable bond.
A residential project developed by COLI in Chengdu, Sichuan province
A residential project developed by COLI in Chengdu, Sichuan province

A well-designed structure is the formula for a successful trade and that was illustrated in the case of China Overseas Holdings, which printed a whopping $1.5 billion exchangeable bond into shares of Hong Kong-listed subsidiary China Overseas Land Investment COLI on Thursday.

The seven-yearfour-year put exchangeable bond due 2023 was guided at a bidask of 100.5100.875 at launch late on Wednesday before strengthening to about 101 in secondary market trade on Thursday.

Equity linked specialists are no doubt extremely familiar with the company and the credit given that China Overseas Holdings is a repeat issuer in the asset class.

The parent...

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