Exchangeable into Tianjin Development draws strong demand

The government-owned credit makes investors comfortable and allows the $200 million deal to price with a conversion premium above 30%.
An artist's impression of the eco-city that is under construction in Tianjin, which will cover 30 sq km and take more than a decade to complete.
An artist's impression of the eco-city that is under construction in Tianjin, which will cover 30 sq km and take more than a decade to complete.

Tsinlien Group, a holding company wholly owned by the Tianjin municipal government, last night sold Rmb1.311 billion $200 million worth of five-year bonds exchangeable into its Hong Kong-listed infrastructure and utility unit Tianjin Development Holdings.

The renminbi-denominated and US dollar-settled deal was well received by the market, which allowed J.P. Morgan as the sole bookrunner to push the conversion premium to 32% -- the highest level achieved by a convertible or exchangeable bond so far this year. Essar Energy, Epistar and Asia Cement’s exchangeable into Far Eastern New Century all priced with a 30% premium, while the other four international deals in the market since the beginning of this...

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