More importantly, they were considered the leading firm by 40% of the market (its nearest competitor scored 17%) and considered the leading firm by 50% of those covered (the nearest competitor scored 19%).
Innovation, too, has been top of the agenda. Credit Suisse scored a first with the largest convertible sukuk globally and the largest real estate convertible, as joint lead on Aldar Properties’ $2.5bn offering. “This marked one of the most important developments in the convertible market because it paves the way for Middle Eastern issuers to tap a broad international investor base,” says Frank Heitmann, head of European convertible origination.
Other firsts include Hong Kong’s first renminbi-denominated convertible with US dollar settlement for Hopson Development’s RMB1830m ($243.2m) bond and Australia’s largest subordinated exchangeable note in a leveraged buyout (LBO) for PBL Media’s $600m. For Actelion’s CHF46m offering, Credit Suisse made the first use of a call spread overlay in Europe and for KKR’s $700m strategic investment in Sun Microsystems, the first ever use of a call spread overlay on a private convertible.
While there are challenges ahead for the convertible market, turbulence may make convertible financing more accessible than other types of financing, and there are plenty of opportunities for growth, says Mr Heitmann. “We have seen continued growth of equity-linked issuance volumes in the Middle East and we expect that to continue. In addition, the increase in monetisation and stake building – hedging of, or yield enhancement of existing shares or non-recourse financing of prospective stakes – will continue to be a growth factor.”
