Looking to finance field acquisitions in Australia and Indonesia, CNOOC launched a US$750m five-year, zero-coupon bond giving holders the right to convert the paper into common shares in five years at HK$6.07, a 35.7% premium to Thursday's closing stock price. CNOOC's share price jumped over 47% in the last year, suggesting buying bonds might be an inexpensive route to securing shares. However, one fund manager, quoted in the South China Morning Post, called the implied 1% premium too low and the conversion price too high. This is the third bond for CNOOC, which was reportedly cleared to increase the new issue by another US$150m.
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