Sinopec launches $7.75 billion exchangeable bond, term sheet shows

China's Sinopec Group is looking to raise HK$7.75 billion through an exchangeable bond, according to a term sheet seen by Reuters on Tuesday.

The seven-year bond has a coupon of zero to 0.99 percent and will be issued by a unit of Sinopec Group, the term sheet said.

The bonds will be exchangeable into its Hong Kong listed-subsidiary Sinopec shares, the term sheet said. The bond has an exchange price of HK$6, 47.1 percent above Sinopec's Hong Kong closing price of HK$4.08 on Tuesday.

The company, which is considered China's largest refiner, plans to use the proceeds raised from the transaction to pay down debt, according to the term sheet.

The deal is being led by Goldman Sachs as the sole book runner.

Reuters