pine-agritech-reoffers-renminbi-cb-below-par

Pine Agritech re-offers renminbi CB below par

The bond issue is 2.5 times covered, achieving the highest premium for a renminbi-denominated bond at 51%.
Pine Agritech, a Singapore-listed Chinese producer of soybean-based products, yesterday raised the equivalent of $263 million from the first renminbi-denominated convertible to hit the market in seven weeks. The offering attracted solid demand but the companyÆs wish to achieve a conversion premium above 50% did come at a price and the deal had to be re-offered below par.

According to sources, the decision to re-offer the bonds at 99.625% of face value, which would have eaten into the bookrunner's fees, was taken to prevent a further decline in the price as the bonds were already trading below par in the grey market. The re-offer came a couple of hours before the books closed and followed...
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