Yangtze Power sells rare dual-tranche EB

Chinese hydropower company sells euro and dollar exchangeable bonds, defying a stock price slump in Hong Kong.

Shanghai-listed China Yangtze Power extended the recent streak of equity-linked issuance in Asia ex-Japan, selling a dual-tranche bond that is exchangeable into China Construction Bank’s H-shares.

The deal provided a novel opportunity for investors to buy a euro-denominated exchangeable bond, and gave bankers the challenge of selling both euro and dollar tranches referencing the same stock but with vastly different exchange premiums.

Yangtze Power defied a weakening tone in Hong Kong’s stock market, launching its bond after the Hang Seng Index slipped 1.5% on Wednesday to close at its lowest level in two months. Bankers are blaming the weakening stock market on the US presidential...

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