Linklaters advises Delta Electronics on one of the largest Thai equity-linked transactions in recent years

Linklaters advised Delta International Holding Limited B.V. (DIH), a wholly-owned subsidiary of global provider of power and thermal management solutions Delta Electronics Inc, on its landmark US$525m zero coupon exchangeable bond issuance, exchangeable into shares of Delta Electronics (Thailand) Public Company Limited.

The transaction represented the first ever exchangeable bond issued by a European issuer with underlying shares listed in Asia and involved innovative structuring elements to deliver a bespoke financing solution for DIH. It also marks one of the largest Thai equity-linked transactions in the past decade.

The proceeds from the transactions will be used to help DIH optimise its working capital efficiency and support its business expansion endeavours.

Linklaters advised on the structuring of the exchangeable bond and the ancillary hedging transactions involving English, Dutch and Thai laws and regulations – highlighting the firm’s market leading expertise in the equity-linked space. The cross-jurisdictional team was led by capital markets partners Taiki Ki, Jonathan Horan, Stephen Song, Alexander Harmse and Pornpan Chayasuntorn and supported by Cheng Rui Chua, Shirley Chan, Chanon Amornthatri, Xu Wang, Rebecca Li, Vijit Suthisripok, Qingke Shen.