Jinmao launches tender for $600m perpetual convert

The flagship property unit of Sinochem Group hopes to buy back its outstanding -- and relatively rare -- perpetual bond as part of a capital management exercise.
Nanjing Jinmao Place is one of Jinmao's landmark commercial complex
Nanjing Jinmao Place is one of Jinmao's landmark commercial complex

China Jinmao Holdings announced on Tuesday a partial tender offer for its outstanding $600 million issue of perpetual subordinated convertible securities to help rejig its capital structure and ultimately lower its borrowing costs. 

The relatively debt-light, BBB-BBB-Baa3 rated property developer is offering to buy back the bonds at 108% of face value, representing a pickup of about 125 basis points over Tuesday’s closing price at 106.75.

The perpetual was issued in October 2010 when the company was known as Franshion Properties. It is one of only two outstanding perpetual convertible bonds in Asia ex-Japan besides Hong Kong-listed ...

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