China Unicom breaks record with $1.8 billion CB

China Unicom on Monday did its part to maintain the recent positive momentum in the Asian convertible bond market by pricing a $1.838 billion deal that attracted strong demand from both hedge funds and outright investors, and proceeded to trade well in the aftermarket. The bonds are convertible either into common shares listed in Hong Kong or into Unicom’s American depositary shares which trade on the New York Stock Exchange.

The five-put three deal is the largest CB ever in Asia ex-Japan, exceeding the $1.5 billion offering by China Petroleum and Chemical Corp Sinopec in April 2007, and the largest equity-linked bond in the region in almost 10 years behind Hutchison Whampoa’s $2.66 billion issue...