fu-ji-food-issues-tasty-second-convertible

Fu Ji Food issues tasty second convertible

A positive response from investors to Fu Ji's second CB within a year allows the three year deal to be increased by 25% to $128 million.

By Anette Jönsson

October 10, 2006

Fu Ji Food Catering became the fifth Asian company to issue convertible bonds in two weeks when it raised HK$1 billion $128 million from an upsized offering late Monday.

While the investor response to the various issues has been somewhat mixed, the increased frequency of the deals suggest that issuers are becoming happy with share price levels again. Market participants are now watching for the next Indian CB following a five-month long drought in the wake of the global equity market correction in May, during which only one convertible above $100 million has hit the market.

Fu Ji Food was launched on a day when the Hang Seng Index recorded its biggest drop in...

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