Asia awards
Asia deals of the year
April 01, 2008
All the regular categories, plus the first private equity deal of the year
Debt and equity-linked
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| Left to right: Chris Wong of Freshfields, Bian Hao of Haiwen & Partners and William Liu of Linklaters with IFLR Asia editor Tom Young |
Hopson development bond
Few if any convertible bonds come close to Hopson in terms of the copycats that it inspired.
As the first convertible bond denominated in renminbi and settled in US dollars, the bond is structured to deal with an accounting change that requires the embedded equity option of a convertible bond to be treated as equity, which in turn means it must be marked to market unless the bond is issued in the company's functional currency.
Because Hopson's functional currency is renminbi, which isn't fully convertible, the bonds are designed to settle in US dollars so that they can be sold to international investors.
The structure also addresses the fact that the renminbi swaps curve is lower than the US dollar...
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