Clifford Chance Advises HSBC on Delta International’s US$525 Million Exchangeable Bonds Issuance.

Clifford Chance has successfully advised Hongkong and Shanghai Banking Corporation Limited (HSBC) in its role as the sole global coordinator, bookrunner, and lead manager for Delta International Holding Limited B.V. (DIH) in the issuance of US$525 million in zero-coupon exchangeable bonds and the delta placement of shares.

Delta Electronics, Inc. announced that its board of directors has approved a plan for its subsidiary, DIH, to issue US$525 million in overseas exchangeable bonds. The initiative aims to strengthen working capital for ongoing business operations and future growth. The bonds, which mature on January 21, 2030, carry a face value of US$200,000 and a 0% annual coupon rate.

The bonds can be exchanged for shares of Delta Thailand, with an initial exchange price set at THB187.6 per share, representing a 40% premium over the reference price. The bondholders are entitled to receive 37,086.3539 shares of Delta Thailand for every US$200,000 principal amount. Additionally, bondholders may request a redemption of their bonds after the third anniversary.

In commenting on the deal, Gareth Deiner stated, “Delta International's exchangeable bond issuance is a significant achievement in the equity-linked markets as the first European-incorporated issuer to offer exchangeable bonds with underlying shares in Asia. This deal not only represents one of the largest Thai equity-linked transactions and cross-border exchangeable bond issuances in Asia since 2011, but also underscores our team's expertise in navigating the intricate legal landscape of multi-jurisdictional equity-linked transactions."

Delta's ongoing efforts to enhance its manufacturing, R&D, and service capabilities are driven by trends in AI, smart manufacturing, e-mobility, and the energy transition. The bond issuance will support the company in optimizing working capital to fund business expansion.

Gareth Deiner received assistance from counsel Claire Neo, associate Joel Sherard, and trainee Caiying Seah from the Singapore office. Partner Terry Yang from Hong Kong, along with counsel Mae Yen Teoh and associate Karen Jiang, provided guidance to HSBC regarding the delta placement of the underlying shares.

Clifford Chance is a global law firm, established over 100 years ago, renowned for its expertise in banking, corporate law, finance, dispute resolution, and tax. With offices worldwide, it serves clients including corporations, financial institutions, governments, and not-for-profits. The firm delivers high-quality legal advice, combining global standards with local expertise, and strives to exceed client expectations by providing innovative solutions across all sectors.

Clifford Chance Advises Sunfire AG Regarding €200 Million Syndicated Loan Agreement