Baosteel EB lifts equity-linked market

摘要

Chinese steelmaker Baosteel gave the sleepy Asian equity-linked market a year-end jolt last week with a US$500m issue of three-year bonds exchangeable into China construction bank H-shares. The issuer was Baosteel Hong Kong Investment, but the Ebs come with a keepwell and liquidity support deed from unlisted parent Baosteel Group, rated A3/A-/A-. This was the first equity-linked instrument in Asia to use a keepwell structure, the first equity-linked issue with underlying shares in a Chinese bank, and the first offshore equity-linked issue from Baosteel.