videocon-completes-2nd-convertible-this-year-after-pricing-mishap

Videocon completes 2nd convertible this year after pricing mishap

Bookrunner forced to lower yield after initial offer was in breech of Indian regulations.

By Anette Jönsson

July 19, 2006

IndiaÆs Videocon Industries has raised $105 million from its second convertible bond issue this year which will be used to partly to finance oil and gas exploration projects in Oman and Australia, partly to expand its colour picture tubes business.

BNP Paribas was sole bookrunner for the offering, which marked its debut as an arranger of CBs for issuers out of Asia where the bank typically focuses on straight equity and debt. And while the issue did eventually get done, the bankÆs inexperience showed through when it launched the Videocon CB at the end of last week with an initial yield that was in breech of Indian regulations.

Yields on Indian CBs are allowed to...

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