Shanghai Industrial completes exchangeable

Investment arm of the Shanghai government returns to the equity-linked market for the first time since 1998.

HSBC completed a HK$2.33 billion $300 million exchangeable by Shanghai Industrial Investment Treasury into red chip Shanghai Industrial Holdings yesterday Wednesday.

Similar to Shangri-La Asia's deal last week, Shanghai Industrial used a five-year bullet maturity, but with more aggressive terms. Partly this reflects the performance of Shangri-La's $200 million convertible, which has traded up to 103% bid in the week since launch and partly the existence of plentiful stock borrow, which should make it easier to extract value from Shanghai Industrial's deal.

The transaction was issued in the name of a SPV guaranteed by the unlisted parent and priced at par with a zero coupon...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222