Sino-Ocean upsizes convertible deal to $900 million

The Chinese real estate developer sells convertible securities with an 8% coupon that will be treated as equity on the balance sheet from day one.

Chinese real estate developer Sino-Ocean Land Holdings has exercised the entire upsize option on the perpetual subordinated convertible securities that it priced on Tuesday morning, increasing the deal size to $900 million. That makes it the largest equity-linked deal in Asia since CapitaLand sold S$1.3 billion $920 million of convertible bonds in February 2008.

At the same time, market participants continued to ponder who bought the bonds, which thanks to their perpetual and subordinated nature, lack of a step-up coupon and very low bond floor, were not viewed as particularly attractive to usual CB buyers such as hedge funds.

Sources said the majority of the deal had been placed with long-only type accounts, including...

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