Vodafone breaks CB mould but £2.9bn is tough sale

1442 vod
By Jon Hay
18 Feb 2016

The extraordinary versatility of convertible bonds — but also the market’s unpredictability — were highlighted on Thursday when Vodafone launched an unprecedented £2.88bn bond designed to achieve the near impossible: debt-like funding that counts as equity but is not dilutive to shareholders, writes Jon Hay.

The bond, variously described by equity-linked bankers away from the deal as “a cool trade” and “a near-perfect trade from the perspective of the banks’ risk”, involved an option package provided by the bookrunners, JP Morgan and Morgan Stanley.

The transaction, equivalent to $4.1bn, was designed to free ...

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access: subs@globalcapital.com

Or sign up for a trial to gain full access to the entire site for a limited period.

Free Trial

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: subs@globalcapital.com or find out more online here.