Mingfa completes $200 million CB on second attempt

The Hong Kong dollar-denominated deal offers a higher coupon and yield compared with the last attempt, but having hit the market just before S&P revised down its outlook on the US, the bonds still dip below par in the aftermarket.
Mingfa chairman Huang Qingzhu
Mingfa chairman Huang Qingzhu

Chinese property developer Mingfa Group International on Monday night returned to the market with a revamped version of the five-year Hong Kong dollar-denominated convertible bond that it pulled at the end of January, and this time it was more successful.

Indeed, the Hong Kong-listed company was able to raise the full HK$1.56 billion $200 million that it aimed for. Last time sources said there wasn’t sufficient demand to exercise the $50 million upsize option, which would have resulted in a deal of just $150 million. And rather than go along with the smaller size, Mingfa chose to cancel the deal and try again later.

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