Shanghai State-owned Assets Operation has launched five-year exchangeable bonds of up to Rmb2bn (US$312m) exchangeable for A-shares of china pacific insurance (CPIC) 12 months after issuance. The initial conversion price has been set at Rmb39.88, or at a premium of 37.75% to CPIC's closing price of Rmb28.95 on December 3. The coupon is marketed at a guidance range of 1.70%-2.50%. Bookbuilding will begin on Tuesday. Both the issuer and the EBs have scored AAA ratings from Shanghai Brilliance. SSAO held 424m A shares of CPIC as of June 30, representing about 4.68% of the company's total issued capital. CICC is the lead on the issue and joint bookrunner with Haitong Securities and Credit Suisse Founder Securities. Proceeds will be used to repay loans and replenish working capital.
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