After a full month with no convertible bond issues in Asia, Keppel Land came to market yesterday with a S$500 million $389 million five-year transaction. However, if the issuer thought that investors were starving for new paper and would be keen to snap up anything that came their way, it was quickly proved wrong.
While the quasi-sovereign Singapore developer is viewed as a strong credit, many investors baulked at the terms on offer and the two bookrunners ended up reoffering the transaction at 99.00. A key reason for the mismatch between the offered terms and the price investors were prepared to pay was the 14% rally in Keppel’s share price over the past five sessions,...
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