Zero coupon convertible bonds due 2021 and 2023 issued by Suzuki in April 2016 totalling 200 billion yen were awarded “DEALWATCH 2016 Equity-linked Product of the Year” by Thomson Reuters Markets KK, and “Capital Eye Awards Best Deal of 2016” by Capital Eye Limited respectively.
Suzuki issued the convertible bonds amounting to 200 billion yen to allocate proceeds as a part of strategic investment for accelerating the mid-term management plan and for strengthening its competitiveness position, primarily for constructing new plant in India as well as development of sustainable and safety technologies.
Upon the issuance of the bonds, Suzuki seeks its continued growth and the enhancement of its corporate value over the mid-to-long term, and also takes into account the effects on the benefit of existing shareholders and ROE. Accordingly Suzuki decided to introduce a new funding scheme for the first time ever in Japan, which combines clauses for acquisition of bonds and 2 types of acquisition clauses, both subject to the maximum number of shares to be delivered. This finance strategy by Suzuki was accepted and evaluated by wide range of investors.
http://www.globalsuzuki.com/ir/news/2015/pdf/20160307_01.pdf
Suzuki was previously awarded Equity-linked Bond of the Year in DEALWATCH 2006 by Thomson Financial in 2007.
