Global law firm Clifford Chance has advised the Hongkong and Shanghai Banking Corporation Limited (HSBC) as sole global coordinator, sole bookrunner and sole lead manager on Delta International Holding Limited B.V.’s (DIH) issuance of US$525 million zero coupon exchangeable bonds and delta placement of shares.
DIH, an investment holding company existing under the laws of the Netherlands, is wholly owned by Delta Electronics Inc., a global provider of power and thermal management solutions listed on the Taiwan Stock Exchange. The bonds, due 21 January 2030, will be exchangeable into shares of Delta Electronics (Thailand) Public Company Limited at an initial exchange price of THB187.6 per share, which is 40% over the reference price. Delta Electronics (Thailand) Public Company Limited produces power systems for telecommunications, medical equipment, industrial automation and electric vehicles, and is listed on the Stock Exchange of Thailand.
Proceeds of the bonds will support Delta Electronics’ global expansion in manufacturing, R&D, and sales, as well as the development of IoT-based smart energy solutions, aligning with key trends such as AI, smart manufacturing, e-mobility, and energy transition.
Lead partner Gareth DeinerĀ said, “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. This transaction reflects our ability to deliver the best team to our clients on a multi-faceted and time-sensitive offering, and against the backdrop of a rapidly evolving financial environment.”
Gareth was supported by counsel Claire Neo, associate Joel Sherard, and trainee Caiying Seah from the firm’s Singapore office. Partner Terry Yang (Hong Kong), counsel Mae Yen Teoh (Singapore) and associate Karen Jiang (Hong Kong) advised HSBC on aspects of the associated delta placement of the underlying shares.
