Fufeng Group sells Rmb820 million of international CBs

The MSG producer holds above par in the secondary market, reversing a recent trend that has seen several CBs trade lower after pricing.

Hong Kong-listed Fufeng Group on Thursday evening raised Rmb820 million $120 million from a renminbi-denominated, but US dollar-settled, convertible bond that was well received by investors -- so well in fact that it was able to hold above par, reversing a recent trend that has seen several new deals fall below par in the secondary market. The positive aftermarket trading came even though the share price fell 3.75% on the day.

Sources referred to the company's strong market position as the number one producer of monosodium glutamate MSG in China and strong earnings growth history as key attractions. Although, the fact that the chairman was lending shares to help investors hedge the equity option of...

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