Shanghai Industrial issues HK$3.9 billion CB

The company's exposure to China real estate and the large deal size help to counter the fairly aggressive terms, particularly for outright investors.
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The Jing-Hu Expressway, one of three toll roads owned by Shanghai Industrial
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<div style="text-align: left;"> The Jing-Hu Expressway, one of three toll roads owned by Shanghai Industrial </div>

Hong Kong-listed Shanghai Industrial, a conglomerate backed by the Shanghai municipal government, last night raised HK$3.9 billion $503 million from a Hong Kong dollar-denominated convertible bond.

The deal launched just two hours after Lotte Shopping hit the market with Asia’s first equity-linked deal this year. At first glance this seemed a bit odd as there could be a risk that the two deals might cannibalise on each other’s demand. However, two of the bookrunners on Shanghai Industrial were also involved in the Lotte Shopping transaction and probably wouldn’t have launched both deals if they felt that was a big risk.

The Shanghai Industrial trade came on...

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