Accor, the French hotels operator, has tapped into the popular convertible bond sector with a €560m ($651m) issue via two of its stalwart relationship banks, BNP Paribas and SG Corporate & Investment Banking.

The bonds will be convertible into Accor shares. The deal was priced with a 1.75% coupon, from a range of 1.625% to 2.125%. The bonds mature in 2008, with a call option in February 2005. The conversion premium was set at 21.2%. The issue has a greenshoe of 10%.