Strong demand for SMIC $200m convertible

Supported by an investment grade rating from S&P, the Chinese chip maker is able to achieve a zero percent coupon and yield as well as a 35% conversion premium.
Investors liked the fact that SMIC is quite a liquid stock.
Investors liked the fact that SMIC is quite a liquid stock.

Hong Kong-listed Semiconductor Manufacturing International Corp SMIC has raised $200 million from the sale of convertible bonds that met with massive demand from investors.

The five-put-three deal, which launched after the market closed on Thursday, drew more than 100 accounts and, according to one source, was about nine times subscribed a big number, especially when considering that the bookrunners started to cap orders at 20% of the total issue five minutes into the bookbuilding.

The order amount confirmed once again the strong appetite for investment grade names. SMIC has obtained a BBB- rating by Standard Poor’s ahead of this issue, which sources said made a big...

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