HONG KONG, July 27 (Reuters) - Shanghai International Port Group (SIPG) raised $1 billion from the sale of bonds exchangeable into shares of Postal Savings Bank of China Co Ltd (PSBC), IFR reported on Thursday, citing a term sheet of the deal.
PSBC is China’s massive savings institution that raised $7.6 billion in an IPO last year.
SIPG sold two zero coupon exchangeable bonds, one due in 2021 and another due 2022, said IFR, a Thomson Reuters publication.
SIPG, one of the cornerstone investors in PSBC’s IPO last year, didn’t immediately reply to a Reuters request for comment on the sale. PSBC also didn’t immediately reply to a request for comment.
Exchangeable bonds are a hybrid security that can offer a fixed rate of return and be exchanged for stock if the bonds trade above the conversion price. (Reporting by Fiona Lau of IFR; Writing by Elzio Barreto; Editing by Lisa Twaronite & Kim Coghill)