Cathay Financial CB

Taiwan’s Cathay Financial raises $254 million from two-year CB

The zero coupon deal is priced with a 27% conversion premium and attracts strong demand from multi-strategy funds and outright investors.
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Taiwan's Cathay Financial drew strong demand from investors
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<div style="text-align: left;"> Taiwan's Cathay Financial drew strong demand from investors </div>

Cathay Financial last night priced a two-year zero coupon convertible bond that pays a 0.25% yield-to-maturity and offers a 27% conversion premium. The final deal size was $254.4 million, a source said.

It attracted huge demand from investors for the deal size of about $250 million, there was demand of more than $1 billion, the source said. About 70 investors participated in the transaction, with demand coming from Europe and Asia.

There has not been any new CB in Asia since the end of May, when Taiwan-based Zhen Ding Technology Holding raised $175 million via a three-year CB.

Cathay Financial is the largest...

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