China SOE uses rare structure to pull off $1bn Postal Savings EB

CSSC shipbuilding 230x150
By Jonathan Breen
25 Jan 2018

China Shipbuilding Industry Corp (CSIC) bagged $1bn on Wednesday from an exchangeable bond linked to Postal Savings Bank of China’s stock, which has rallied this year. But the deal was more than just an opportunistic trade — it used a relatively rare structure in the equity-linked market, writes Jonathan Breen.

CSIC, working with global co-ordinators and bookrunners BNP Paribas and Citic CLSA, launched bookbuilding after Hong Kong markets closed for a $1bn seven year put four EB. The duo marketed the zero coupon paper with a 20%-30% exchange premium range and a 75bp-125bp yield, which translated into an initial exchange ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial