ENN favours CB over straight bond for $500m

31 Jan 2013

ENN Energy Holdings, a Chinese clear energy company, has already shown that it can tap the conventional bond market, but the company’s management decided this week that it made more sense to turn to equity-linked investors for $500m of funding. That bodes well for a market that should experience a flurry of deals over the next few months, said a banker familiar with the transaction.

The company made its debut in the CB market this week with a $500m deal, pitching a five year zero-coupon bond at a yield of between 0% and 0.50%, and a conversion premium of 30%-40%.

The bond ended up pricing at the best terms for investors: offering a ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial