Zhejiang Expressway seals Asian euro CB first

The Chinese toll road operator received overwhelming demand for its debut €365 million H-share convertible bond, setting an example that other issuers could follow.
A section of the Shanghai-Hangzhou-Ningbo Expressway
A section of the Shanghai-Hangzhou-Ningbo Expressway

Zhejiang Expressway broke new ground for Asian equity-linked specialists on Wednesday, raising 365 million $390 million from the region’s first euro-denominated convertible bond a deal that was met with massive demand at the tightest end of guidance.

After announcing its intention to issue US dollar convertible bonds in September, the Chinese toll road operator made what appears to be a smart move to switch to the euro market, taking advantage of the relatively lower funding cost against the US dollar.

The decision was largely driven by the fact that US interest rates have risen 50bp since the announcement, making a dollar-denominated zero-coupon deal harder to execute, according...

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