Asia: Convertible bond sales scale new heights
Rising interest rates and soaring share prices have encouraged issuers to look beyond traditional debt and equity, but the glut of new paper means issuers must be willing to pay.
By John Loh
After years of struggle, Asia’s equity-linked market is back with a roar. So far this year, the 40 or so deals priced in the region (excluding Japan and onshore China) have raised a total of $9.7 billion, marking a dramatic increase from a year ago when issuers did 22 deals and raised $1.5 billion, according to Dealogic.
“The boom in equity-linked issuance is long overdue,” says Jennifer Choi, an equity-linked origination banker at Credit Suisse. “The market is finally catching up because of rising rates and the outperformance of share prices.”