home-inns-chooses-home-currency-for-cb

Home Inns chooses home currency for CB

The deal attracts strong demand thanks to an aggressive expansion story and some scarcity of renminbi paper.
Nasdaq-listed Home Inns Hotels Management last night raised about $150 million from a renminbi-denominated convertible bond, which met with strong demand despite the volatility in both credit and equity markets. As a result, the Chinese operator of budget hotels was able to exercise the upsize option and increase the deal from the base size of Rmb900 million $121.6 million to Rmb1.1 billion.

Sources say many of the investors who came into the deal did so for the equity story, but the thin supply of new renminbi CBs in recent months may also have attracted some CB-focused players. There have only been two deals since July the other was a Rmb1.32 billion $175 million transaction...
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