Yongda prices Rmb1bn CB with a little help from a SBLC

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By Mark Baker
26 Jun 2014

DBS and UBS brought an unusual convertible bond to market this week, pricing a Rmb1bn ($161m) synthetic renminbi deal whose coupon and principal are payable in dollars and which was also wrapped by a standby letter of credit (SBLC) provided by DBS.

The structure was tailored to the particular challenges presented by the underlying stock, Hong Kong-listed China Yongda Automobiles Services Holdings, and bankers close to the issuer said a conventional deal would have been very challenging, if not impossible.

The synthetic currency structure did not make the deal a ...

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