Baosteel Group, the world’s fourth-largest steel producer by production volume, completed its second equity-linked issuance in 12 months on Tuesday by printing a $500 million zero-coupon bond exchangeable into the Hong Kong shares of China Construction Bank.
Similar to other China-incorporated companies, Baosteel issued the bond through its offshore subsidiary Baosteel Hong Kong Investment and provided a keepwell and liquidity support deed for credit enhancement purposes.
Pricing was fairly aggressive but equity-linked investors had no difficulty snapping up the new three-year bullet deal after the redemption of China Unicom’s $1.84 billion five-year convertible bond last month created ample liquidity in the market.
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