Temasek, the Singapore investment fund, appears at first glance to have hit on an ingenious way of raising money cheaply. It has sold 650 million Singapore dollars ($512 million) of bonds, exchangeable into shares of Standard Chartered, the emerging market lender. If the bank’s shares rise more than 27 percent within three years, holders of the bond can convert at a profit. If not, bondholders get back exactly what they put in, with no interest.
But the deal probably isn’t so sweet. Full story
