Country Garden bags $1bn with novel call spread CB

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By Jonathan Breen
22 Nov 2018

Chinese property developer Country Garden Holdings has pocketed HK$7.83bn ($1bn) after using a call spread for a concurrent new issue and buy-back of existing convertible bonds — a popular structure in the US but groundbreaking for Hong Kong. Jonathan Breen reports.

Country Garden came to the equity-linked market on Wednesday to issue a new CB and use the proceeds to buy back a chunk of a HK$15.7bn 364-day zero-coupon CB sold in January.

But its timing and expectations were ambitious, to say the least. The firm has taken a ...

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