giant-convertible-from-reliance-draws-ample-demand

Giant convertible from Reliance draws ample demand

HSBC and JPMorgan arrange the $1 billion deal on a day the stock reaches a new record high. Conversion premium is kept at 30%.
February 05, 2007
Indian telecom services provider Reliance Communications last night returned to the market with its second convertible bond issue in 12 months and this time it appears to have been fully accepted by the market even though the size was twice as large as last yearÆs deal.

At $1 billion, the five-year zero-coupon CB also marked the largest equity-linked issue ever out of India surpassing Reliance's own $500 million issue in March 2006 and the similar-sized deal from HDFC in August 2005. Both those deals struggled. HDFC had to be re-offered below par, and the first Reliance deal allegedly left sole leads Deutsche Bank with a lot of paper on its own books due to a...
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