China Airline Sets Record With $2.4 Billion Convertible Bond
- China Southern’s offering opens for subscription on Thursday
- Sale is largest for sector; biggest non-bank issue since 2011
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A rare mega deal by a Chinese airline is set to revive the country’s convertible bond market, after volatile trading dried up issuance of the popular securities.
China Southern Airlines Co. on Thursday opened subscriptions for 16 billion yuan ($2.4 billion) of its convertible bonds, the largest deal for a non-financial firm since China Petroleum & Chemical Corp. sold 23 billion yuan of the notes in early 2011, according to data compiled by Bloomberg. The sale, which is also the biggest in a year and a record for the airline sector in China, comes after just eight deals were priced in September, the least since May.