(Alliance News) - Petropavlovsk PLC placed USD125 million of convertible bonds
, taking the option to increase its offer from USD100 million in response to a "significantly oversubscribed book of demand from a range of investors", the Russian gold miner said Thursday.
AXA Investment Managers (AXA IM) has said that it has appointed a head for convertible bonds
There are a number of opportunities presented by convertible bonds
in the region.
HH: Therefore, for state-owed institutions, if they are positive but not overly bullish on the outlook on their respective stock prices, then a convertible bond
is a good option.
HH: Convertible bonds
are usually put in a 'too complicated' product box, which in fact they aren't.
Once the formalities are completed, the company will embark on the second stage, the issuance of the convertible bond
Considering a convertible bond
with callable and puttable provisions, the process of the underlying stock price satisfies the stochastic differential equation given by 
, for each time t, pricing a convertible bond
is the choice of stopping time v [member of] [T.sub.t] with payoff [CP.sub.v] on exercise if v < T and [xi] := max([CP.sub.T], F) if v = T, under the constraint that the price at time t should be no less than [CP.sub.t].
To measure capital available for investment in convertible debt, we use flows into mutual funds specializing in convertible bond
investments and into convertible arbitrage hedge funds.
The convertible bond
is due in 2013 and holds an interest rate of 4 percent per annum.
On February 14, Immofinanz invited bondholders of the outstanding convertible bonds
due 2014 and 2017 to sell their debt certificates back to the company.
KBC's Global Convertibles offers primary and secondary market services for issuers and investors in convertible bonds
on the markets in Europe, the US, Asia and Japan, while Asian Equity Derivatives provides market-making services in listed Hong Kong warrants and issues equity-linked notes and options based on the equity of Asian companies.
Without timely refinancing, however, THSRC is very unlikely to meet the potential early redemption requirements on its convertible bond
. The bond carries a put option, where investors can ask THSRC to redeem the bond at 124.72% of par value on May 15, 2010.
UCB launched earlier today the offer for the EUR 350 million unsubordinated unsecured convertible bonds
, due 2015 and convertible into its ordinary shares.
The second is through the appreciation in the market value of the convertible bond
or preferred stock that occurs as a result of an increase in the price of the common stock.