strong-demand-for-exchangeable-bond-into-ioi-corp

Strong demand for exchangeable bond into IOI Corp

Pricing is pushed to the aggressive end of the range as the long-awaited bond issue is more than six times covered.
IOI Capital has sold $370 million worth of bonds exchangeable into its parent company, Malaysian palm oil producer IOI Corp, at a price that must be described as aggressive.

IOI Corp, which also manufactures oleochemicals and specialty oils and fats and is active within property development and investments through a subsidiary, will act as guarantor for the bonds.

With $2.5 billion worth of orders and 125 accounts in the book, Citigroup as the sole bookrunner managed to push the yield to put all the way to the tight end of the 3% to 4% offering range, which resulted in an implied volatility at a significant premium to historic levels.

Even at a 4% yield the...
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