Chinese Estates rode to the relief of the regional convertible market yesterday with a HK$1.5 billion $193 million deal on Wednesday. The five-year bonds have a zero coupon and a zero yield and were issued at par.
The conversion price is set at 15% above the reference share price of HK$6.408, which was the volume weighted average share price for Wednesday trading in Chinese Estates stock. The stock on Wednesday had traded up a huge 11%, on the back of large volume of retail buyers excited by the Hong Kong real estate market.
The sole book runner, Deutsche Bank, launched the Reg-S deal after the...
