Larsen Toubro returned to the convertible bond market on Monday night with a $125 million convertible via ABN AMRO and Citigroup. The deal had been expected for a while, with launch awaiting the announcement of third quarter results and the stock going ex-dividend following the payment of an extraordinary dividend.
Indian CB's remain a difficult sell to international investors as a result of the terrible performance of deals launched earlier this year. As a result, LT's offering had a very concentrated investor base just 35 accounts and was only just subscribed 1.5 times.
In the deal's favour, it was quite small and backed by...
