soho-china-pulls-off-asias-largest-cb-this-year

Soho China pulls off Asia's largest CB this year

The Hong Kong dollar-denominated CB is priced with a 3.75% coupon and raises $360 million towards further acquisitions.

Commercial property developer Soho China last night raised HK$2.8 billion $360 million from a convertible bond, which primarily tapped into fundamental demand for the stock, and a belief that the current recovery in the Chinese property sector is set to continue, rather than conventional demand for CBs.

The terms were fixed at the most generous end from an investor point of view, but the company still managed to achieve quite an attractive borrowing cost with an annual coupon at 3.75%. In fact, some investors were said to be unhappy with the coupon -- as the bonds will be redeemed at par there is no additional yield on top of the coupon and there are...

¬ Haymarket Media Limited. All rights reserved.

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