Hon Hai Precision and Tata Engineering Locomotive accessed the convertible market yesterday Wednesday raising a combined total of $500 million. Of the two deals, Tata offered the most rarity value as it is the first proper Indian CB since a $99 million issue for Gujarat Ambuja Cements in January 2001 and the first transaction without credit enhancement since 1997.
With Citigroup and Merrill Lynch as lead managers, Tata's deal was opened and closed within two hours, attracting an oversubscription level of 10 times even after orders were capped. The issue size was also capped at $100 million, since any amount above this level would require regulatory approval.
Raising proceeds of $90...
